Singapore’s civil servants are set to receive a mid-year bonus of 0.4 months’ salary in 2025, as announced by the Public Service Division (PSD) on June 16. In addition to this mid-year Annual Variable Component (AVC), lower-tier civil servants will receive an extra one-time cash payment of up to $400. This decision comes in response to Singapore’s economic conditions and the outlook for the remainder of the year.
Carefully Calibrated Support in Light of Economic Slowdown
According to PSD, the mid-year payouts were determined by the nation’s economic performance during the first quarter of 2025 and an overall cautious forecast for the year ahead. Singapore’s economy saw a 3.9% year-on-year expansion in the first quarter, but with the Ministry of Trade and Industry keeping GDP growth projections modest at between 0% and 2% for the full year, caution remains.
Extra Cash Payments for Junior Officers in Public Service
Alongside the 0.4-month bonus, junior-grade civil servants will benefit from additional support. Officers in the MX13(I) and MX14 grade brackets will receive a one-time payment of $250. Those in even lower-grade brackets MX15 and MX16 and staff under the Operations Support Scheme will receive a higher additional payment of $400. These measures aim to support civil servants who may be more impacted by ongoing economic uncertainty.
Joint Consultation with Unions Behind the Decision
The mid-year bonus and supplementary payments were decided after discussions between the government and public sector unions, including the National Trades Union Congress (NTUC). Both the PSD and NTUC emphasized that the decision is balanced, providing support to public servants while being mindful of the economic environment.
Moderate Growth Amid Labour Market Adjustments
The labour market, while still expanding, has shown signs of a slowdown. Advance data from the Ministry of Manpower (MOM) reveals that the pace of employment growth has decelerated, and unemployment rates have experienced a marginal increase since December 2024. These developments suggest growing caution among employers and reflect broader global uncertainties affecting business sentiment.
Future Bonus Decisions to Reflect Economic Conditions
PSD noted that both public sector unions and the government will continue to monitor economic performance throughout the year. The outcome of these evaluations will influence the size and structure of year-end payments to civil servants. This approach ensures that public sector compensation remains aligned with real economic conditions and fiscal prudence.
NTUC Emphasizes Need for Preparedness and Inclusivity
Cham Hui Fong, NTUC’s deputy secretary-general, described the 0.4-month bonus as a “moderated and balanced” approach that takes into account the current uncertainties facing Singapore’s economy. She stressed that the one-time payments are a crucial form of support, especially for workers who may be struggling during this transitional period.
Workforce Readiness and Union Collaboration Are Key Moving Forward
As Singapore navigates a complex economic landscape, NTUC is calling on companies to enhance collaboration with both unions and employees. This includes honest conversations about technological transformation, shifting business strategies, and workforce planning. Cham also underscored NTUC’s commitment to helping workers adapt, particularly older employees who might face more challenges during times of change.
Stability and Support as Cornerstones of Public Sector Policy
This mid-year bonus announcement reflects Singapore’s commitment to maintaining fair compensation for civil servants while remaining responsive to broader economic realities. As the year progresses, further adjustments will likely be made based on national performance, labour market trends, and inflationary pressures. The approach reaffirms Singapore’s ongoing effort to balance fiscal responsibility with social support.