Civil Service Mid‑Year Payment 2023

Civil servants to receive 0.3-month mid-year bonus
Junior grade officers to get an additional one-time payment of up to $400

This follows close consultation with public sector unions

                In close consultation with the public sector unions, the Government has decided to pay all civil servants a mid-year Annual Variable Component of 0.3 month. Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of $200 while those in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS) Grades III and IV will receive a higher one-time payment of $400. This mid-year payment takes into consideration the weakened economic outlook, and significant downside risks that remain in the global economy.

Economic outlook

2               The Singapore economy expanded by 0.4 per cent on a year-on-year basis in the first quarter of 2023, moderating from the 2.1 per cent expansion in the previous quarter. The Ministry of Trade and Industry has maintained a GDP growth forecast of “0.5 per cent to 2.5 per cent” for 2023, with growth likely to come in at around the mid-point of the forecast range. The assessment is that Singapore’s external demand outlook for the rest of the year has weakened and downside risks have risen. The downside risks include the impact of tighter global financial conditions and the risk of further escalations in geopolitical tensions.

3               The labour market continued to expand in the first quarter of 2023, albeit at a more moderated pace compared to the previous quarter. Total employment expanded for the sixth consecutive quarter, and unemployment rates remained low.

Progressive approach to mid-year payment

4               Against this backdrop, the Government, in close consultation with the public sector unions, has decided to pay all civil servants a mid-year Annual Variable Component (AVC) of 0.3 month. Taking a progressive approach to the mid-year payment, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of $200 while civil servants in junior grades equivalent to MX15 and MX16, and those in OSS Grades III and IV will receive a higher one-time payment of $400.

5               In deciding the year-end AVC payments, the Government will continue to monitor the economic situation closely, and take into consideration the guidelines by the National Wages Council which will be released later in the year.