Singapore civil servants to receive 0.4-month mid-year bonus in 2025

The Singapore Government has announced that it will pay all civil servants a mid-year Annual Variable Component (AVC) of 0.4 month for 2025.

Meanwhile, civil servants in grades equivalent to MX13(I) and MX14 will also receive an additional one-time payment of $250.

For civil servants in the Operations Support Scheme (OSS) and grades equivalent to MX15 and MX16, they will receive a higher one-time payment of $400.

The Public Service Division (PSD) revealed the mid-year bonus quantum on 16 June 2025. It shared that the amounts were derived after close consultation with the public sector unions.

NTUC Deputy Secretary-General Cham Hui Fong said that during negotiations with PSD, the unions took into account global economic uncertainties and slower growth rate that businesses were experiencing.

“The mid-year AVC payment of 0.4 month for the civil service is thus moderated and balanced as we are navigating a complex environment with lots of uncertainties. The additional one-time lump sum payments give boost to civil servants who may need more assistance during this period.

“We thank our civil servants for their hard work over the past months in serving Singaporeans, including our workforce,” said Ms Cham.

She also urged companies across all sectors to work closely with unions and workers to prepare for any challenge that lies ahead.

“Have open and proactive communications to share [your] business challenges, strategic shifts and technological adoption,” she said.

Economic outlook

The Singapore economy grew by 3.9 per cent on a year-on-year basis in the first quarter of 2025.

However, the Ministry of Trade and Industry (MTI) is still maintaining its GDP growth forecast—which considers the state of the global economic environment—at 0-2 per cent for 2025.

Additionally, advance estimates from the Ministry of Manpower (MOM) also showed signs of decreasing labour demand, even though the labour market expanded in 1Q 2025.

MOM shared that the pace of employment growth has slowed compared to previous quarters and unemployment rates have risen slightly from December 2024.

The ministry expects the labour market to further soften moving forward.

Labour Movement urges workers to remain adaptable

Amalgamated Union of Public Employees (AUPE) General Secretary Sanjeev Tiwari thanked the Government for accepting its proposal for the mid-year AVC payment.

AUPE is the largest public sector union in Singapore. It represents public employees from ministries, statutory boards and organs of state.

“We appreciate these lump sum payments, which provide some relief for our officers in these grades during challenging times and demonstrate the Government's continued commitment to supporting our officers who need it most,” he said.

He also gave thanks to the workers in the civil service, adding that workers need to remain adaptable and seize opportunities to upskill themselves.

“AUPE extends our deepest appreciation to all civil servants for their unwavering support and dedication in serving our nation,” said Mr Sanjeev.

Ms Cham shared that NTUC stands ready to help workers through any unforeseeable challenges, and it will ensure that no worker gets left behind, especially older workers who may need additional support during transitions.

“Together with employers, we must work hand-in-hand to build resilience and adaptability in our workforce while navigating these uncertain times,” she said.

Both the PSD and NTUC said they will continue to jointly monitor the economic situation closely. They will take into consideration the National Wages Council guidelines—which will be released later in the year—in deciding the year-end AVC payments.

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