SINGAPORE: The Government on Thursday (Jun 15) announced a mid-year annual variable component (AVC) of half a month for civil servants.
Additionally, lower-wage civil servants will receive a built-in wage increase of up to S$20 in their monthly salary, over and above their annual increment in 2017.
In its media release, the Public Service Division (PSD) said that Grade IV officers would get a built-in wage increase of S$15 in their monthly salaries and Grade V officers in the Operations Support Scheme, S$20. The wage increases would benefit some 1,485 employees, it added.
This will be in addition to their annual increment for the full year, and "signals the Government’s continued commitment to raise the salaries of lower-wage civil servants", PSD said.
PSD said that the mid-year payments were decided in close consultation with the public sector, and come against the backdrop of 2.7 per cent growth of the economy in the first quarter of the year and expected growth of 1 to 3 per cent for the full year.
"Labour demand is expected to remain uneven across sectors in 2017. Total employment growth has moderated, while the unemployment rate has trended upwards and redundancies are expected in some sectors as the economy restructures," it added.
The mid-year payments will be made in July this year, and 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 2017, PSD said.
"APPRECIATIVE AND HEARTENED" BY HELP FOR LOWER-WAGE CIVIL SERVANTS
The amount announced on Thursday was slightly higher than the 0.45-month mid-year AVC civil servants got last year.
National Trades Union Congress (NTUC) assistant secretary-general Cham Hui Fong said the union was "happy to note the Government’s commitment to continue helping our lower-wage officers with the built-in quantum, though no civil servants are earning below S$1,200 per month".
The National Wages Council (NWC) in May recommended an increase of S$45 to S$60 for low-wage workers earning a basic monthly pay of up to S$1,200.