No year-end bonus for civil servants; 2,400 lower-wage staff to get $1,200 one-time payment

Singapore’s civil servants will not receive any year-end bonus in 2020 due to challenging economic conditions amid the Covid-19 pandemic.
Singapore’s civil servants will not receive any year-end bonus in 2020 due to challenging economic conditions amid the Covid-19 pandemic.PHOTO: ST FILE

SINGAPORE - Singapore's 85,000 civil servants will not receive any year-end bonus this year amid the economic fallout from the Covid-19 pandemic, the Public Service Division (PSD) said in a press release on Friday (Nov 27).

This means that they will not be receiving any annual variable component (AVC) payment for the entire year as mid-year bonuses were also not paid out earlier this year.

However, the Government will continue to give special consideration to lower-wage civil servants amid difficult times, said a PSD spokesman. Around 2,400 civil servants will receive a one-time lump sum payment of $1,200.

The Government will also continue to pay the non-pensionable annual allowance or 13th-month bonus of one month's pay to all civil servants.

This decision was made in the light of the negative economic outlook, with the PSD citing the projected economic contraction of between 6 and 6.5 per cent for 2020.

According to the Ministry of Manpower's preliminary estimates, the overall, resident and citizen unemployment rates also rose in the third quarter.

"The public sector stands in solidarity with Singaporeans in this challenging economic environment. In close consultation with the public sector unions, the Government has decided that there will not be any year-end Annual Variable Component (AVC) payment for civil servants this year," said the PSD spokesman.

"Our public officers have gone above and beyond the call of duty, and worked tirelessly over many months, in the national fight against Covid-19. The Government deeply appreciates the hard work of all public officers.

"The fight against Covid-19 continues and the public service will continue to work hard, hand in hand with our citizens and stakeholders, to manage the pandemic and its economic ramifications. Together, we will overcome and emerge stronger," said the PSD.