The government has decided to pay all civil servants a mid-year Annual Variable Component (AVC) of 0.3 months.

This is to recognise the "tireless efforts of civil servants" while bearing in mind the overall economic situation, the Public Service Division (PSD) announced today (Jun. 18).

The decision was made "in close consultation with the public sector unions," PSD added.

Additional one-time payment for those in junior grades

In addition, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$350.

Civil servants in junior grades equivalent to MX15 and MX16, as well as OSS Grades III to V, will receive a higher one-time payment of S$700, PSD said.

Singapore economy expected to recover in 2021, but "downside risks" remain

PSD noted that there was a 1.3 per cent expansion in the Singapore economy on a year-on-year basis, in the first quarter of 2021.

This is a reversal from the 2.4 per cent contraction in the previous quarter.

In addition, total employment, overall unemployment and total retrenchments have seen consecutive positive improvements quarter on quarter, while the external economic environment has also improved since February.

However, PSD also mentioned "significant downside risks" such as countries around the world experiencing recurring waves of Covid-19 infections, as well as more transmissible strains of the virus.

In Singapore, there are also "significant risks and uncertainties in our own Covid-19 situation".

The pace of recovery is also expected to be uneven across various sectors of the economy.

Considerations for year-end payments

PSD said that the government "will continue to monitor the economic situation closely", and take into consideration the guidelines by the National Wages Council which will be released later in the year when deciding on the year-end payments.

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