Singapore
civil servants to get 0.45 month mid-year AVC
SINGAPORE: Civil servants in the Republic will receive a
mid-year Annual Variable Component (AVC) of 0.45 months, the Public
Service Division (PSD) announced on Tuesday (Jun 14).
Last year, the AVC was 0.5 months and civil servants received a
one-off bonus of S$500 to mark the country's 50th
birthday.
In a media statement, PSD said the Government decided on this
year's 0.45-month AVC in close consultation with the public sector
unions, and taking into account Singapore’s economic performance.
The agency noted that the economy grew by 1.8 per cent in the first
quarter of 2016, and is expected to grow by 1 to 3 per cent for the
full year amid a weaker global economic outlook.
Labour demand is expected to be uneven across sectors in 2016,
and while the unemployment rate has remained low, employment growth
has slowed and redundancies are expected in some sectors as the
economy restructures, the agency added.
PSD also said the Government also supports the National Wages
Council’s (NWC) wage recommendations for low-wage workers, and will
give civil servants in Grades IV and V of the Operations Support
Scheme (OSS) a built-in wage increase of S$20 and SS$25
respectively, in addition to their annual increment in 2016. PSD
said this would benefit around 1,500 civil servants, signalling the
Government’s continued commitment to help raise the salaries of
low-wage civil servants.
The mid-year AVC and the built-in wage increase for civil
servants will be paid in July this year.
NTUC assistant secretary-general Cham Hui Fong said that,
considering the slowdown in the country's economic growth, the
payment "fairly rewards civil servants for their dedication and
contributions".
"We are also heartened that the Government took into
consideration the NWC recommendations to sustainably uplift the
incomes of our lower-wage workers," Ms Cham said.
"Moving forward, the labour movement and the public sector
unions will work closely with PSD and relevant government agencies
to press on with re-skilling efforts as well as job redesign to
raise productivity; and more importantly, help workers to progress
in their careers.”
Two other public service unions, the Amalgamated Union of Public
Daily Rated Workers (AUPDRW) and Amalgamated Union of Public
Employees (AUPE), also welcomed the announcement, with both noting
that Singapore's slower economic growth this year played a part in
the quantum of the mid-year AVC.
AUPDRW general secretary G Muthukumarasamy said he believed the
increment for low-wage public servants would "greatly help our
lower-wage public servants and their families, especially during
these challenging times.
"I also urge our companies and workers to work hand in hand with
the Government to raise productivity so that wage increases are
sustainable in the long run," he added.
Meanwhile, AUPE general secretary Yeo Chun Fing said the union
was "happy to conclude a package that is fair and most importantly,
recognises the hard work and contributions of our civil
servants.
"We hope that if the economy recovers, the Government will duly
reward our civil servants.”
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 2016, according to PSD.
- CNA/mz