2025 Year-End Bonus for Civil Servants in Singapore Hits Record High

Photo Credits: Straits Times

Singapore’s civil servants have reason to celebrate as the Government announces one of the most generous bonus packages in recent memory. The 2025 year-end bonus for civil servants in Singapore stands at 1.3 months, representing a significant increase from the previous year’s payout. This announcement, made by the Public Service Division on 24 November 2025, reflects the nation’s strong economic performance and acknowledges the dedication of public sector workers throughout the year.

Breakdown of the 2025 Year-End Bonus Package

The year-end Annual Variable Component (AVC) of 1.3 months marks a notable rise from the 1.05-month bonus granted in 2024. When combined with the mid-year bonus of 0.4 months announced in June 2025, civil servants will receive a total of 1.7 months in full-year AVC—one of the highest payouts in recent years.

Beyond the standard bonus, the Government has adopted a progressive approach to support lower-wage workers within the civil service. Officers in grades equivalent to MX15 and MX16, as well as those in the Operations Support Scheme (OSS), will receive an additional one-time payment of S$600. This brings the total lump-sum payments for junior-grade officers to up to S$1,000 for 2025, including the S$400 additional payment distributed during the mid-year bonus period.

All civil servants will also continue to receive the Non-Pensionable Annual Allowance (NPAA) of one month, commonly referred to as the 13th-month bonus. This means that come December, civil servants can expect to take home approximately 3.3 months’ worth of salary, comprising their regular monthly pay, the 13th-month bonus, and the year-end AVC.

Economic Factors Behind the Generous Payout

The substantial 2025 year-end bonus for civil servants in Singapore is closely tied to the nation’s robust economic performance. The Ministry of Trade and Industry (MTI) upgraded Singapore’s GDP growth forecast to “around 4.0 per cent” for 2025, a significant improvement from earlier projections of 1.5 to 2.5 per cent. This upgrade reflects the better-than-expected performance of the Singapore economy during the first three quarters of the year.

In the third quarter of 2025, Singapore’s economy expanded by 4.2 per cent on a year-on-year basis, building on the strong 4.7 per cent growth recorded in the previous quarter. For the first nine months of 2025, GDP growth averaged an impressive 4.3 per cent year-on-year, approaching the 4.4 per cent growth achieved for the whole of 2024.

Several sectors contributed to this economic resilience. Trade-related industries, including manufacturing, wholesale trade, and transportation and storage, outperformed expectations. The biomedical manufacturing cluster recorded growth of 8.9 per cent, supported by higher-than-expected production of key pharmaceutical ingredients. Additionally, the ongoing artificial intelligence boom provided sustained support for exports of AI-related semiconductors from the region.

Strong Labour Market Conditions

Beyond GDP growth, Singapore’s labour market conditions have proven stronger than anticipated, further justifying the generous bonus payout. According to the Ministry of Manpower’s Labour Market Advance Release for the Third Quarter of 2025, total employment rose at a faster pace than in the previous quarter.

Unemployment rates and retrenchments remained low and stable, indicating a healthy and resilient workforce. The labour market showed expansion for both residents and non-residents, whilst real incomes continued to rise. These positive indicators demonstrate that Singapore’s workforce has weathered global economic uncertainties well, maintaining stability despite challenges posed by geopolitical tensions and evolving trade policies.

The National Wages Council (NWC) guidelines for 2025/2026 also played a role in determining the bonus quantum. These guidelines emphasise the importance of productivity-driven wage growth and the continued support for lower-wage workers through the Progressive Wage Model.

Historical Comparison of Civil Service Bonuses

To appreciate the significance of the 2025 year-end bonus for civil servants in Singapore, it helps to examine the bonus trends over recent years. The full-year AVC of 1.7 months in 2025 represents the highest payout since at least 2010, surpassing the 1.5 months paid in 2013, 2017, 2018, and 2024.

In 2024, civil servants received a total of 1.5 months in full-year AVC, comprising a 0.45-month mid-year payment and 1.05 months at year-end. The 2023 payouts were considerably lower, with civil servants receiving just 0.9 months total—0.3 months at mid-year and 0.6 months at year-end—reflecting Singapore’s GDP growth of only around 1 per cent that year.

The contrast with 2020 is particularly stark. During the height of the COVID-19 pandemic, civil servants received no mid-year or year-end bonus, though the 13th-month payment remained intact. The recovery since then has been remarkable, with bonus payments steadily increasing as Singapore’s economy regained momentum.

Union Responses and Worker Support

The bonus announcement has been warmly received by public sector unions. NTUC Deputy Secretary-General Cham Hui Fong described the payout as “significant and one of the highest full-year AVCs in recent years.” She noted that the outcome followed productive negotiations with the Public Service Division and expressed gratitude to civil servants for their hard work and resilience amid evolving socio-economic conditions.

Ms Cham emphasised the importance of civil servants continuing to invest in their future readiness by tapping into available training opportunities, embracing digitalisation and innovation, and staying productive and competitive to keep pace with change. The advent of AI and ongoing technological shifts make such adaptability increasingly crucial for the public sector workforce.

Sanjeev Kumar Tiwari, General Secretary of the Amalgamated Union of Public Employees (AUPE), echoed these sentiments. He described the year-end AVC as “a fair recognition by the Government for our civil servants’ work, in a rapidly evolving environment, as the economy stabilises amid ongoing uncertainties.” He added that the bonus serves as a morale booster for civil servants and reaffirmed AUPE’s commitment to advocating for officers to stay relevant through training and skills upgrading.

Progressive Approach to Supporting Lower-Wage Workers

A notable aspect of the 2025 bonus structure is the Government’s progressive approach to supporting lower-wage civil servants. By providing additional lump-sum payments to junior-grade officers, the Government ensures that those earning lower salaries benefit proportionally more from the bonus.

This approach aligns with the NWC’s recommendations to uplift lower-wage workers and reflects Singapore’s broader commitment to inclusive growth. The Progressive Wage Model, which now benefits up to nine in ten full-time lower-wage workers in eligible roles, continues to be a cornerstone of this strategy.

For 2025, civil servants in MX15 and MX16 grades, along with those in the Operations Support Scheme, received not only the year-end additional payment of S$600 but also mid-year payments of S$400, bringing their total additional support to S$1,000 for the year.

Looking Ahead: Economic Outlook for 2026

Whilst the 2025 bonus represents excellent news for civil servants, the economic outlook for 2026 suggests some moderation ahead. The Ministry of Trade and Industry has projected GDP growth of 1.0 to 3.0 per cent for 2026, indicating a potential slowdown from the strong performance of 2025.

Several factors contribute to this more cautious forecast. The impact of United States tariff measures on global demand, coupled with the possibility of further trade tensions, poses risks to Singapore’s export-oriented economy. Additionally, manufacturing and trade-related services sectors are expected to expand at a slower pace compared to 2025.

However, civil servants can take heart from the fact that Singapore’s economy has demonstrated remarkable resilience in navigating global uncertainties. The Government and tripartite partners remain committed to supporting the workforce through challenging periods whilst ensuring that economic gains are shared fairly when times are good.

Conclusion

The 2025 year-end bonus for civil servants in Singapore represents a well-deserved recognition of public sector workers’ contributions during a year of strong economic performance. With a total AVC of 1.7 months—the highest in over a decade—civil servants are being rewarded for their dedication and hard work.

The bonus structure, which includes additional support for lower-wage workers, demonstrates the Government’s commitment to inclusive growth and fair wage practices. As Singapore continues to navigate global economic challenges, civil servants can be assured that their efforts are valued and that the nation’s success is shared across all levels of the public service.