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Civil Service Bonus: How Much Has The Government Paid In Bonuses Over The Past Decade?

Good bonuses and job security. These are some of the reasons, among others, that may be cited when you talk to someone about why they are working in the civil service.

The Public Service Division (PSD) announced on 19 June 2023 that civil servants will receive a 0.3-month mid-year bonus. Additionally, junior grade officers (grades equivalent to MX13(I) and MX14) will receive an additional one-time payment of $200, while those in grades equivalent to MX15 and MX16 and those in the Operations Support Scheme (OSS) will receive a higher one-time payment of $400. This mid-year payment takes into consideration the weakened economic outlook, and significant downside risks that remain in the global economy.

On Thursday, 27 November 2023, the Public Service Division (PSD) announced that civil servants will be receiving a 0.6-month year-end bonus in 2023. This comes after the 0.30-month mid-year bonus. Taken together with the mid-year payments, civil servants will receive a total of 0.9 months in full-year AVC. The civil service will continue to pay out the 13th-month bonus, also known as the non-pensionable annual allowance (NPAA) to all civil servants.

In addition, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional lump sum of $400 while those in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS) will receive a higher lump sum of $800. This year-end payment takes into consideration that Singapore’s Gross Domestic Product (GDP) is expected to come in at around 1.0 per cent in 2023, as well as the latest National Wages Council (NWC) guidelines.

Read Also: Annual Wage Supplement (AWS), Annual Variable Component (AVC), Monthly Variable Component (MVC): Here’s What You Need To Know About Flexible Wage System

This brings us to the topic of this article. Are the bonuses paid out in the civil service as high as what some people make it out to be?

Who Are Considered As Civil Servants?

The first thing to recognize is that there is a small difference between the public service and the civil service.

The civil service is actually a subset of the larger public service division of the government which comprises about 146,000 workers. Within the Public Service is the Civil Service, comprising about 85,000 officers working in the Ministries and Organs of state. They work in various schemes of service, including the Administrative Service, legal, education, police, civil defence as well as other generic schemes.

Statutory boards (such as HDB, CPF Board, IRAS) have their own recruitment and human resource management policies. They are legally distinct and independent employers from the Civil Service. However, they will likely take their cue from the civil service when paying out bonuses.

What Are Bonuses Tied To?

Civil service bonus appears to share a relationship with GDP growth. As seen in their 2020 mid-year press release and 2020 year-end release as well as 2023’s press release, GDP growth is usually cited by the government to explain the rationale behind the bonuses paid out. In times of strong economic growth, bonuses tend to be higher. When the country is experiencing a slowdown such as in 2023, bonuses are usually lower.

Also, actual bonuses may differ based on positions within the civil service. Lower-wage civil servants may get higher bonuses in proportion to their salary as there is usually a minimum bonus payout for most years. For example, in the 2018 year-end bonus, civil servants received either one month of salary or a minimum of $1,800, whichever is higher. This means a worker with a salary of $1,500 will get $1,800, which is $300 more than his one-month salary of $1,500.

For the 2020 year-end bonus, about 2,400 lower-wage civil servants will receive a lump-sum payment of $1,200, in line with the recommendations from the National Wages Council, while all other civil servants did not receive any bonus, aside from the 13th-month bonus. For 2021, civil servants in grades equivalent to MX15 and MX16, as well as those in OSS Grades III to V will receive an additional one-time payment of $500.

It’s also possible to get a cut. As seen in 2020, there will be a one-off salary cut of either 0.5 months or one month for public officers at the superscale grade.

There are three components to the bonuses given out in the civil service.

The first is the 13th-month bonus, which is usually automatically included.

You also have the mid-year bonus and the year-end bonus.

In some years, there may also be an additional one-off lump sum payment that the government may give. You may also receive a performance bonus.

How Much Has The Government Been Paying In Bonuses Over The Past 13 Years?

Ignoring one-off lump sum payment and performance bonus, which is not something you may get every year, here’s the level of bonus for civil servants over the past decade. We have automatically included the 13th-month bonus and excluded any one-off lump sum payments. Do note it doesn’t include any performance bonus which is subject to individual performance.

  Mid-year End-year Total bonus (inclusive of 13th month, excluding any one-off lump sum)
2023 0.30 0.60 1.9 months
2022 0.35 1.1 2.45 months
2021 0.3 1 2.3 months
2020 0 0 1 month
2019 0.45 0.1 1.55 months
2018 0.5 1 2.5 months
2017 0.5 1 2.5 months
2016 0.45 0.5 1.95 months
2015 0.5 0.65 2.15 months
2014 0.5 0.8 2.3 months
2013 0.4 1.1 2.5 months
2012 0.3 0.7 2 months
2011 0.5 0.75 2.25 months
2010 0.5 1 2.5 months
Average (computed up to 2023) 0.40 0.74 2.14 months

Source: Public Service Division (PSD)
Lower-wage civil servants may get higher bonuses than what is stated since there is usually a minimum bonus payout for some years. 

We can see that over the past 14 years, the average bonus (inclusive of 13-month but excluding any one-off lump sum bonus) is 2.14 months. This excludes any performance bonus.

The last time there was no mid-year bonus was in 2020, when the COVID-19 pandemic hit Singapore’s economy hard. There was also no year-end bonus for 2020 though the usual 13th-month bonus was given.

Read Also: Average Salary Guide In Singapore: What You Need To Know Before Comparing Your Salary To Others

The Civil Service Does Give Decent Bonus, But Don’t Assume It’s Always Guaranteed

Given that the civil service is the biggest employer of workers in Singapore, it should come as no surprise that many private companies would look to take reference from how much the government is paying out in bonuses. And since the government wants to encourage employers to share their profits with employees, it makes sense that it will do its best to set forth a good example.

At the same time, expecting a significant bonus each year, beyond the usual 13th month, is not something that we should take for granted. As shown in 2019 and 2020, bonuses can be quite low or even zero in some years besides the 13th month salary. That said, there are also additional one-off lump sum payments given out in some years.

To end off, bonuses should not be the reason anyone should choose to join or stay in the civil service. While getting between 2 to 3 months (inclusive of the 13th-month bonus) is good when the economy is doing fine, it’s likely that you will be able to enjoy a similar level of bonus in many private companies. When the economy isn’t doing well, expect your total bonus for the year to be between 1 to 2 months (inclusive of the 13th-month bonus).

Read Also: Applying For A Job That Is Advertising A Salary Range? Here Are 3 Things You Need To Know First

This article was originally published on 23 June 2020 and updated to reflect the year-end bonus for 2023.

The post Civil Service Bonus: How Much Has The Government Paid In Bonuses Over The Past Decade? appeared first on DollarsAndSense.sg.


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