As Singapore approaches the mid-year mark, civil servants can expect a mid-year bonus of 0.4 months, as announced by the Public Service Division (PSD). This decision reflects the current economic climate, which has been described as having a “subdued economic outlook.”
Bonus Details
In addition to the mid-year Annual Variable Component (AVC) of 0.4 months, junior-grade officers will receive additional one-time payments. Specifically:
- Officers in grades equivalent to MX13(I) and MX14 will receive an extra S$250.
- Officers in grades equivalent to MX15 and MX16, as well as those in the Operations Support Scheme (OSS), will receive S$400 more.
Economic Context
The decision regarding the mid-year bonus was influenced by Singapore’s economic performance in the first quarter of 2025, where the economy grew by 3.9% year-on-year. However, the PSD noted that the overall economic outlook remains cautious, with forecasts indicating weaker GDP growth and potential downside risks.
The Ministry of Trade and Industry has maintained the GDP growth forecast for the year at “0.0% to 2.0%,” citing uncertainties in the global economic environment. Additionally, the Ministry of Manpower has reported signs of moderating labor demand, with a slight increase in unemployment rates.
Comparison to Previous Year
Last year, civil servants received a slightly higher mid-year bonus of 0.45 months, with junior officers receiving up to S$250 in additional payments. For the year 2024, civil servants received a total of 1.5 months’ bonus, including a year-end bonus of 1.05 months.
Future Considerations
The PSD indicated that the public sector unions and the Government will continue to monitor economic performance throughout the year and will adjust year-end payments accordingly. This will also take into account the guidelines from the National Wages Council, which are expected to be released later this year.
This announcement highlights the government’s approach to balancing fiscal responsibility with the need to support civil servants amid economic challenges.