Singapore’s economy is improving – that means civil servants will get their biggest bonus in 4 years

Reuters

Civil servants are about to get their biggest bonus payout in four years, The Business Times has reported.

On Monday (Nov 27), the Public Service Division (PSD) announced that the 84,000 employees of government ministries will receive a Non-Pensionable Annual Allowance in December, and an annual variable component (AVC) equivalent to one month’s pay in January.

Public service employees had already received a 0.5-month AVC in July, bringing the total bonus payout for 2017 to an equivalent of 2.5 months’ salary for each employee.

On top of that, all 1,490 lower-wage civil servants will get a minimum year-end AVC of $1,800, regardless of their monthly salary.

In a statement, PSD said that the bonus payouts are reflective of the more optimistic economic outlook in 2017 compared to 2016.

The Singapore economy grew by 5.2 per cent year-on-year in the third quarter this year, higher than the 2.9 per cent growth in the previous quarter.

It also grew at a faster pace of 3.5 per cent in the first three quarters of 2017, compared to 1.7 per cent over the same period a year ago.

“Taking into account the global and domestic economic environment, the Ministry of Trade and Industry has forecast that the economy will grow by 3.0% to 3.5% for the whole of 2017,” PSD’s statement said.

It added: “The payment (including the minimum payment) was decided in consultation with the public sector unions”.