SINGAPORE — Singapore’s civil servants will not receive their year-end bonus payment this year due to the economic downturn caused by the ongoing COVID-19 pandemic, but those with lower wages will receive a one-time payment of $1,200.
The announcement, made by the Public Service Division (PSD) in a press release on Friday (27 November), means that some 85,000 civil servants will not receive any annual variable component (AVC) payment this entire year, as mid-year bonuses were also not paid out earlier this year.
Around 2,400 lower-wage civil servants will receive a one-time lump-sum payment of $1,200.
“(The) government continues to give special consideration for lower-wage civil servants, especially during these difficult times,” said the PSD.
The government will also continue to pay the non-pensionable annual allowance, or 13th-month bonus, of one month to all civil servants.
“COVID-19 has left a significant impact on our economy and the labour market in 2020. Singapore’s external demand outlook in 2020 remains subdued with key advanced and regional economies expected to contract in 4Q2020 and be in full-year recession,” said the PSD.
It cited the Ministry of Trade and Industry’s revised official forecast for Singapore’s full-year gross domestic product (GDP), which is expected to contract between 6.5 per cent and 6 per cent.
According to the Ministry of Manpower’s preliminary estimates, the overall, resident and citizen unemployment rates rose in the third quarter.
“The public sector stands in solidarity with Singaporeans in this challenging economic environment. In close consultation with the public sector unions, the Government has decided that there will not be any year-end Annual Variable Component (AVC) payment for civil servants this year,” said the PSD.
The government deeply appreciates the hard work of all public officers in the fight against COVID-19, with many having gone beyond their call of duty and working tirelessly over many months, it added.
“The fight against COVID-19 continues and the public service will continue to work hard, hand in hand with our citizens and stakeholders, to manage the pandemic and its economic ramifications. Together, we will overcome and emerge stronger,” the PSD said.
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