Civil Service Mid‑year Payment 2014

Civil Service Mid-year Payments

Mid-Year Annual Variable Component of 0.5-month for all civil servants

In addition:
Division IV officers to receive a wage increase of $70 in monthly salary, and
Division III officers to receive a wage increase of $30 in monthly salary, over and above their annual increment in 2014.

The Singapore economy grew by 4.9% on a year-on-year basis in the first quarter of 2014, unchanged from the growth recorded in the preceding quarter. Global economic growth is expected to improve in 2014, supported by continued recovery in the US and the Eurozone.

In Asia, while the ASEAN economies are likely to remain resilient, China’s growth is expected to moderate slightly in 2014. Amidst this global backdrop, the Ministry of Trade and Industry forecasts GDP growth of 2% to 4% for 2014. Nevertheless, downside risks remain, such as monetary conditions in the US tightening faster than expected. The overall unemployment rate in Singapore remained low at 2.1% in March 2014.

Against this backdrop, the Government has decided to pay a mid-year Annual Variable Component (AVC) of 0.5-month.

The Government also supports the National Wages Council’s (NWC) recommendation to grant a built-in wage increase to raise the wages of low-wage workers. The Government will give a built-in wage increase to Division IV and III civil servants. This will be in addition to their annual increment in 2014.

Division IV civil servants will receive a built-in wage increase of $70 in their monthly salaries. This will benefit around 3,500 Division IV civil servants. Division III civil servants will receive a built-in wage increase of $30 in their monthly salaries. This will benefit around 5,500 Division III civil servants.

In all, the Civil Service’s NWC adjustments will benefit about 9,000 Division IV and III civil servants. This signals the Government’s continued commitment to help raise the salaries of lower-wage civil servants, in line with productivity growth and private sector salary benchmarks.

The mid-year AVC and the built-in wage increase for Division IV and III civil servants will be paid in July 2014. Illustrations of the revisions can be found in the worked examples in the attached factsheet.

The mid-year payments were decided in consultation with the public sector unions. 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 2014.

Worked Examples: