In late 2025, civil servants in Singapore received word that their year-end bonus would be quite substantial. After negotiations with the various public sector unions, the Public Service Division (PSD) declared that the year-end payout would consist of 1.3 months of the Annual Variable Component (AVC).
This announcement takes us to the end of 2025 when the economy has performed better than anyone could have guessed. The bonus, besides acknowledging the work of the civil servants, is in line with the initial wage guidelines, with the country’s GDP growth projected at about 4% and a very healthy labour market.
Details of the Bonus Announcement
Every civil servant will be given an AVC of 1.3 months at the end of the year. This payment is in addition to the fixed 13th-month Non-Pensionable Annual Allowance (NPAA), which is granted to everyone without exception.
Junior-grade officers, whose ranks are equivalent to MX15, MX16, and the Operations Support Scheme, will also receive a one-time payment of $600 in addition to the $600 payment.
Mid-Year and Full-Year Picture
In June 2025, civil servants had already received a mid-year AVC of 0.4 months. The year-end payment will then give a total of 1.7 months in full-year AVC for 2025.
This is one of the biggest full-year AVCs in recent years, which is a clear indication of the economy’s positivity.
Reasons for Higher Bonus
The collaboration between NTUC and the unions (e.g., AUPE) played a large role in the decision. Among other things, increased GDP growth to about 4% and a robust job market with little unemployment were some of the factors.
The National Wages Council (NWC) guidelines for 2025/2026 were also influential, especially for bottom-rung workers.
Extra Help for Junior Grades
The one-time added payment of $600 for junior staff is in line with the general tendency of being more supportive of lower-wage workers. For those who combine their mid-year extra payment with this, their total sum of up to $1,000 consists of lump-sum payments for this year.
How the Bonus Is Paid
Eligible civil servants will not have to do anything to receive the payments. In most cases, payments come in December during the salary crediting process.
The NPAA for the 13th-month is also paid out at the end of the year in the same manner as before.
2025 Bonus Compared to Recent Years
Below is a table showing the full-year AVC for civil servants:
| Year | Full-Year AVC (months) | Notes on Extra Payments |
|---|---|---|
| 2024 | 1.5 | Standard across grades |
| 2025 | 1.7 | Highest in recent years; +$600 for juniors |
| 2023 | Around 1.5 | Moderate economic conditions |
| 2018 | 1.5 | Similar strong performance |
What This Means for Civil Servants
The bonus is a token of gratitude towards public service and an expression of trust in Singapore’s economic stability. Unions in the sector have deemed it fair recognition amidst turbulent times globally.
Looking Ahead
Although this concludes the discussions for the year 2025, future bonuses will still depend on the performance of the economy.
The public sector bonus update for Singapore 2025 was a generous 1.7 months full-year AVC, which included a large year-end payment and additional help for juniors.
For personal payout information, check with your HR department or the official PSD website. Also, keep abreast of economic news as it will indicate the direction of future trends!