Singapore civil servants to receive 1.3 months year-end bonus – highest payout in recent years

Civil servants will receive a year-end Annual Variable Component (AVC) of 1.3 months, one of the highest payouts in recent years, the Public Service Division (PSD) announced on 24 November 2025.

In addition, civil servants in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS), will receive an additional one-time payment of $600, reflecting the Government’s progressive approach in providing greater support for lower-wage workers.

This year-end payment takes into account Singapore’s GDP, which is expected to grow by around 4.0 per cent in 2025 as well as the National Wages Council (NWC) guidelines for 2025/2026.

The announcement follows negotiations between the Government, NTUC, the Amalgamated Union of Public Employees (AUPE), and public sector unions.

Strong economic and labour market performance

The Ministry of Trade and Industry (MTI) has upgraded Singapore’s GDP growth forecast for 2025 to “around 4.0 per cent”, taking into consideration the better-than-expected performance of the Singapore economy in the first three quarters of the year, as well as the latest global and domestic economic situations.

On the labour market front, the Ministry of Manpower’s (MOM) Labour Market Advance Release Third Quarter 2025 showed that labour market conditions were stronger than anticipated.

Total employment rose faster than in the previous quarter, while unemployment rates and retrenchments remained low and stable.

Taken together with the mid-year payment of 0.4 months, civil servants will receive a total of 1.7 months in full-year AVC, with those in the more junior grades receiving additional total lump sum payments of up to $1,000 in 2025.

The Government will continue to pay the Non-Pensionable Annual Allowance (NPAA or 13^th-month bonus) of 1.0 month to all civil servants.

NTUC welcomes the year-end payout to workers

NTUC Deputy Secretary-General Cham Hui Fong welcomed the payout, saying it is “significant and one of the highest full-year AVCs in recent years.”

She noted that the outcome followed negotiations with the PSD and thanked civil servants for their hard work and resilience amid evolving socio-economic conditions, influenced by global trade, geopolitical uncertainties, and the advent of AI.

While acknowledging that the overall outlook is stabilising, Ms Cham said uncertainties remain.

She encouraged civil servants to continue investing in their future readiness by tapping into training opportunities, embracing digitalisation and innovation, and staying productive and competitive.

“We also appreciate the Government’s recognition of our civil servants’ contributions and its progressive approach in providing greater support for lower-income workers.

“NTUC and our public-sector unions remain committed to partnering with the Government and our civil servants to build a resilient and future-ready workforce,” Ms Cham added.

AUPE General Secretary Sanjeev Kumar Tiwari said the union was happy the Government had accepted their proposals for a fair year-end AVC payout.

“The year-end AVC of 1.3 months, along with the lump-sum payment of $600 for civil servants in the grades equivalent to MX15 and below, is a fair recognition by the Government for our public officers’ work, in a rapidly evolving environment, as the economy stabilises amid ongoing uncertainties,” he said.

Mr Sanjeev described the payout as a morale booster for civil servants, adding that AUPE will continue advocating for officers to stay relevant through training and skills upgrading to meet the demands of a dynamic workforce.

“AUPE will continue to work closely with the Government in upholding the interests of our public officers, ensuring that they are adequately recognised for their dedication and contributions,” he said.

AVC payouts over the years

The 1.7 months full-year AVC for 2025 is the highest since at least 2010, surpassing the 1.5 months paid in 2013, 2017, 2018 and 2024.

Note: Figures exclude the mandatory 13th-month Non-Pensionable Annual Allowance (NPAA)

Learn more about Singapore's tripartite system and how it makes negotiations like this happen.