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All civil servants in Singapore will receive a 0.3-month mid-year bonus, the Public Service Division (PSD) said in a statement on Monday (Jun. 19).
Additional one-time payment for those in junior grades
Taking a "progressive approach" to the mid-year payment, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$200.
Those in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS) Grades III and IV will receive a higher one-time payment of S$400.
"This mid-year payment takes into consideration the weakened economic outlook, and significant downside risks that remain in the global economy," said PSD.
According to PSD, the Singapore economy expanded by 0.4 per cent on a year-on-year basis in the first quarter of 2023, moderating from the 2.1 per cent expansion in the previous quarter.
The Ministry of Trade and Industry (MTI) has maintained a GDP growth forecast of 0.5 per cent to 2.5 per cent for 2023, with growth likely to come in at around the mid-point of the forecast range.
PSD added:
"The assessment is that Singapore's external demand outlook for the rest of the year has weakened and downside risks have risen. The downside risks include the impact of tighter global financial conditions and the risk of further escalations in geopolitical tensions.
The labour market continued to expand in the first quarter of 2023, albeit at a more moderated pace compared to the previous quarter. Total employment expanded for the sixth consecutive quarter, and unemployment rates remained low."
In deciding the year-end annual variable component 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.
Top image by Andrew Koay.