Sigapore dollar
Singapore dollar notes Reuters

Civil servants in Singapore will receive a year-end Annual Variable Component (AVC) of one month this year, powered by improvements in Singapore's economy.

All 84,000 civil servants will receive a year-end AVC of one month's pay - higher than the 0.5 month they received in 2016, the Public Service Division (PSD) said on Monday.

Lower-wage civil servants will get a minimum year-end AVC of S$1,800.

Around 1,490 civil servants will benefit from the minimum AVC payment of S$1,800. In an example given by PMO, an officer earning a monthly salary of S$1,500 will get a year-end AVC of $1,800. This is S$300 more than what he would get at 1 month of his monthly salary.

The announcement comes against the backdrop of the economy growing by 5.2 percent year-on-year in the third quarter of 2017, compared to 2.9 percent in the previous quarter.

According to the statement, the AVC payment is in line with the more optimistic economic outlook for 2017 compared with 2016.