Singapore civil servants to get 0.45 month mid-year AVC
SINGAPORE: Civil servants in the Republic will receive a mid-year Annual Variable Component (AVC) of 0.45 months, the Public Service Division (PSD) announced on Tuesday (Jun 14).
Last year, the AVC was 0.5 months and civil servants received a one-off bonus of S$500 to mark the country's 50th birthday.
In a media statement, PSD said the Government decided on this year's 0.45-month AVC in close consultation with the public sector unions, and taking into account Singapore’s economic performance. The agency noted that the economy grew by 1.8 per cent in the first quarter of 2016, and is expected to grow by 1 to 3 per cent for the full year amid a weaker global economic outlook.
Labour demand is expected to be uneven across sectors in 2016, and while the unemployment rate has remained low, employment growth has slowed and redundancies are expected in some sectors as the economy restructures, the agency added.
PSD also said the Government also supports the National Wages Council’s (NWC) wage recommendations for low-wage workers, and will give civil servants in Grades IV and V of the Operations Support Scheme (OSS) a built-in wage increase of S$20 and SS$25 respectively, in addition to their annual increment in 2016. PSD said this would benefit around 1,500 civil servants, signalling the Government’s continued commitment to help raise the salaries of low-wage civil servants.
The mid-year AVC and the built-in wage increase for civil servants will be paid in July this year.
NTUC assistant secretary-general Cham Hui Fong said that, considering the slowdown in the country's economic growth, the payment "fairly rewards civil servants for their dedication and contributions".
"We are also heartened that the Government took into consideration the NWC recommendations to sustainably uplift the incomes of our lower-wage workers," Ms Cham said.
"Moving forward, the labour movement and the public sector unions will work closely with PSD and relevant government agencies to press on with re-skilling efforts as well as job redesign to raise productivity; and more importantly, help workers to progress in their careers.”
Two other public service unions, the Amalgamated Union of Public Daily Rated Workers (AUPDRW) and Amalgamated Union of Public Employees (AUPE), also welcomed the announcement, with both noting that Singapore's slower economic growth this year played a part in the quantum of the mid-year AVC.
AUPDRW general secretary G Muthukumarasamy said he believed the increment for low-wage public servants would "greatly help our lower-wage public servants and their families, especially during these challenging times.
"I also urge our companies and workers to work hand in hand with the Government to raise productivity so that wage increases are sustainable in the long run," he added.
Meanwhile, AUPE general secretary Yeo Chun Fing said the union was "happy to conclude a package that is fair and most importantly, recognises the hard work and contributions of our civil servants.
"We hope that if the economy recovers, the Government will duly reward our civil servants.”
The Government will decide on the year-end AVC payment for civil servants after taking into consideration Singapore’s economic performance in the second half of 2016, according to PSD.
- CNA/mz