Bonus for Singapore civil servants

Singapore to give civil servants two months’ bonus

November 25, 2010

Singapore has raised its 2010 GDP growth forecast to 15 per cent over 2009. — Reuters pic

SINGAPORE, Nov 25 — Singapore civil servants will receive a two-month bonus at the end of the year, the biggest since 1993 when combined with two other payouts, the Straits Times reported today. The move comes as Singapore is benefitting from strong economic growth which is pushing up wages and boosting jobs growth.
The government expects GDP growth in 2011 to come in between 4-6 per cent year-on-year. It raised its full 2010 growth forecast to around 15 per cent year-on-year from a previous estimate of 13-15 per cent.
The state-controlled Straits Times said some 74,000 government employees received a bonus of half a month’s pay in July, as well as a S$300 (RM717) one-off payment. They will get a special variable payment of at least one month’s pay in March.
The newspaper said Deputy Prime Minister Teo Chee Hean unveiled details of this year’s bonus yesterday.
“Perhaps this is a sign that the government wants to remain competitive with the private market as the labour market is pretty healthy right now,” said David Cohen, an economist at Action Economics.
“Maybe we will see some pressure on prices on that front, but I think overall its a positive sign of the strength of the economy — that the government finances can afford to be generous,” he said.
Singapore’s annual inflation rate eased to 3.5 per cent in October from a 20-month high of 3.7 per cent in September, but analysts said the rate could pick up next year and the central bank should maintain tight policy. — Reuters