Civil servants to receive 0.4-month mid-year bonus with additional support for junior officers
Singapore’s civil servants will receive a 0.4-month mid-year AVC bonus in June 2025. Junior officers in lower grades will also receive a one-time payment of up to S$400, reflecting a cautious approach amid slower growth and a softening labour market.
- Civil servants will receive a 0.4-month mid-year AVC bonus in June 2025.
- Junior officers in lower grades will get an additional one-time payment of up to S$400.
- The cautious payout reflects Singapore’s slower growth outlook and a moderating labour market.
Civil servants in Singapore will receive a 0.4-month mid-year Annual Variable Component (AVC) bonus, the Public Service Division (PSD) announced on 16 June 2025.
In addition, junior officers will be given a one-time payment of up to S$400. The payout comes after discussions with public sector unions and reflects both economic conditions and the labour market outlook.
Civil servants in grades equivalent to MX13(I) and MX14 will receive a one-time payment of S$250, while those in lower grades such as MX15, MX16, and the Operations Support Scheme will receive S$400.
According to PSD, these decisions were guided by Singapore’s first quarter economic results and expectations for the remainder of 2025. Singapore’s economy grew by 3.9 per cent year-on-year in the first quarter, supported by strong manufacturing and services output.
However, the Ministry of Trade and Industry (MTI) has maintained a cautious growth forecast of between 0.0 and 2.0 per cent for the full year. Officials cited persistent global uncertainty and downside risks, including geopolitical tensions and weaker external demand.
On the domestic labour front, advance data from the Ministry of Manpower indicated a moderating job market. Employment continued to expand in the first quarter, but at a slower pace, while unemployment edged up slightly compared to December 2024.
The Ministry warned that the labour market could soften further as business sentiment weakens, underscoring the need for prudence in wage and bonus decisions.
Against this backdrop, the Government opted for a smaller mid-year bonus compared to the previous year. In 2024, civil servants received a 0.45-month mid-year bonus and a 1.05-month year-end bonus. By contrast, the mid-year bonus in 2023 stood at 0.3 months.
The PSD said the inclusion of additional one-time payments, particularly for lower-wage officers, reflects a progressive approach to support civil servants who may be more affected by rising living costs and economic headwinds.
The Government, together with public sector unions, will continue to monitor economic conditions for the rest of the year. The final year-end AVC will be determined in consultation with the National Wages Council (NWC), which is expected to issue updated guidelines later in 2025.
Officials emphasised that this system ensures bonuses remain aligned with Singapore’s overall economic performance while balancing the need to support workers, especially those at the lower end of the pay scale.
