The Government has decided to pay all civil servants a mid-year Annual Variable Component (AVC) of 0.3 months after consulting public sector unions.
Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of $350 and civil servants in junior grades equivalent to MX15 and MX16. Operations Support Scheme Grades 3 to 5 will receive a higher one-time payment of $700.
The Public Service Division made the announcement on 18 June 2021, adding that the bonus was to recognise the tireless efforts of civil servants, while keeping in mind the overall economic situation due to the ongoing COVID-19 pandemic.
The Ministry of Trade and Industry has maintained a GDP growth forecast of 4 per cent to 6 per cent for 2021. The pace of recovery is also expected to be uneven across various sectors of the economy.
“The Government will continue to monitor the economic situation closely. In deciding on the year-end AVC payments, the Government will take into consideration the guidelines by the National Wages Council which will be released later in the year.
“We deeply appreciate the hard work and perseverance of all public officers in the fight against COVID-19. The Public Service continues to stand in solidarity with Singaporeans and we will emerge as a stronger Singapore,” said PSD in a media release.
Responding to the announcement, NTUC Deputy Secretary-General Cham Hui Fong said that NTUC supports the Public Service Division’s decision, calling it a welcome reward for civil servants as both mid-year and year-end variable component payments were put on hold in 2020 due to the uncertain economy.
“We are heartened that the Government took into consideration the National Wages Council’s recommendation by providing a one-off lump sum for our lower-wage workers. We hope the Government will consider built-in wage increases that are more sustainable and can uplift their incomes in the longer term.
“NTUC has been working closely with our Government agencies and public sector unions to leverage the Company Training Committees [CTC] and the Operation and Technology Roadmap [OTR] tool to support their organisation and workforce transformation. We will continue to support our Public Service workforce as they work with Singaporeans to overcome challenges and adapt to a progressively multi-faceted Singapore given the uncertain economy ahead,” she added.
Ms Cham also urged private sector companies that have seen recovery or growth to reward their workers similarly.
Amalgamated Union of Public Employees (AUPE) General Secretary Sanjeev Kumar Tiwari also welcomed the decision.
He said: “Despite the tough economic conditions and uncertainties, we have managed to conclude a moderate package that recognises the hard work and contributions of our public officers. AUPE is glad that the AVC has been brought back with additional financial support for our lower-income public officers.
“We are grateful to our public officers who have stood at the forefront and gone beyond the call of duty during the pandemic to serve our people. We hope the economy will continue to ride out this pandemic and improve; and our public officers will be recognised duly for their commitment and dedication.”
