We explain what civil servants’ year-end bonus entails and how much has been given out over the past 12 years.
You'll probably have read the news by now that all civil servants will receive 0.6-month year-end bonus.
Those in grades equivalent to MX13(I) and MX14 shall receive an additional lump sum of S$400. And those in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS) will receive a higher lump sum of S$800.
In this current job climate, it does sound like being part of the civil service can mean a fairly stable career. The civil service is known to be an ‘iron rice bowl’ when it comes to providing employment and steady income, but how does it measure up when it comes to bonuses?
We discuss how much you can expect to receive in bonuses as a civil servant.
Table of contents:
- Who are civil servants?
- What is the year-end bonus?
- Breakdown of year-end bonus over the past 13 years
- Comparison with the private sector
💡 Pro-tip: Grow this extra windfall further by putting it into a 1-year endowment plan with 3.50% p.a. interest. Find out more below.
Who are civil servants?
There are around 86,000 civil servants, comprising officers working in the ministries and other parts of the government body, spanning the Administrative Service, civil defence, education, police and other departments.
They are part of the around 153,000 public officers working in 16 ministries and over 50 statutory boards. However, the latter is legally separate from the civil service and have their own policies, though they probably take reference from the civil service.
What is the year-end bonus?
The civil service year-end bonus is also known as Annual Variable Component (AVC). AVC is made up of mid-year bonus and year-end bonus determined by Singapore government.
It is dispensed in addition to an employee's regular salary. The amount paid to employees varies according to role and seniority, but all civil servants receive the same payout percentages across the board, with junior officers also receiving an additional lump sum to reflect the progressive nature in determining the AVC for civil servants.
The civil service bonus usually correlates with Singapore’s Gross Domestic Product (GDP) growth. The GDP growth forecast of Singapore narrows to around 1.0 per cent in 2023 in view of a slowing economy and uncertainty arising from geopolitical tensions.
Altogether, civil servants receive 0.9 month in full-year AVC for 2023 - This includes 0.3 month in mid-year bonus and 0.6 month in year-end bonus. Officers up to MX13(I) and equivalent receive an additional lump sum of up to $1,200 in 2023.
The year-end bonus does not constitute the 13th-month bonus (Non-Pensionable Annual Allowance) and performance bonus.
Breakdown of year-end bonus over the past 13 years
Accordingly, the year-end bonus has gone up and down with the years, the lowest being no bonus (in 2020), and the highest being 1.1 months (in 2013).
We put together the civil servant year-end bonus history from 2010 to 2023 to give you an idea of how much extra income you could receive working in civil service.
Year | Mid-year bonus | Year-end bonus |
2023 | 0.3 | 0.6 |
2022 | 0.35 | 1.1 |
2021 | 0.3 | 1 |
2020 | 0 | 0 |
2019 | 0.45 | 0.1 |
2018 | 0.5 | 1 |
2017 | 0.5 | 1 |
2016 | 0.45 | 0.5 |
2015 | 0.5 | 0.65 |
2014 | 0.5 | 0.8 |
2013 | 0.4 | 1.1 |
2012 | 0.3 | 0.7 |
2011 | 0.5 | 0.75 |
2010 | 0.5 | 1 |
As can be seen, the year-end bonus usually ranges around 0.7-month to 1-month for most years.
As mentioned earlier, there is also a 13th-month payment for all civil servants.
Also not reflected in the table above, are the one-off payments that the government issues to those in junior grades together with the year-end bonus, in order to elevate the wages of lower-salaried workers. For example, junior grade officers (grades equivalent to MX15 and MX16, as well as those in Operations Support Scheme) received an additional S$800 at the end of 2023 .
In 2020, when there was no year-end bonus due to the poor economic conditions, S$1,200 was paid out to Operations Support Scheme Grades III to V.
Comparison with the private sector
When you add up the full-year AVC with 13th-month bonus , the total annual bonus for civil servants ranges from around 1.5 to 2.5 months (excluding performance bonuses which are specific to each individual).
This is quite comparable with the private sector’s bonus quantum reflected in the Ministry of Manpower’s Annual Wage Changes data. The only striking difference would perhaps be that the private sector still received, on average, an annual bonus of 1.79 months in 2020, while the civil service only received the 13th-month bonus.
Nonetheless, the bonus quantum for the private sector would also differ from industry to industry, unlike the civil service, where a uniform percentage is applied throughout.
In conclusion, while the civil service is known for providing reliable employment in Singapore, its bonuses are largely dependent on the state of the economy. If the size of the bonus you could be receiving is an important factor to you in choosing a job, your interests might be better served in the private sector.
But if the average range of the civil service bonuses is sufficient for your requirements, and other aspects of its roles meet your needs, the civil service could be a place for you to carve out a long-term future.
The choice of the right bank account can help grow your hard-earned bonus. Compare and apply for the best savings accounts, and benefit from exclusive offers and welcome gifts.
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