Singapore Civil Servants to Receive Mid-Year Bonus Amid Economic Concerns

On June 16, 2025, the Public Service Division (PSD) of Singapore announced that civil servants will receive a mid-year bonus amounting to 0.4 months of their salary. This decision, which reflects the nation’s economic performance during the first quarter of the year, also includes a one-time payment of up to $400 for junior-grade officers. This bonus structure is indicative of the subdued economic outlook, as the Ministry of Trade and Industry has forecasted a GDP growth of only 0 to 2 percent for the year.
The mid-year bonus is a routine measure aimed at adjusting civil servant remuneration in line with economic realities. According to the PSD’s statement, the bonus considers both the 3.9 percent year-on-year growth in Q1 2025 and the anticipated economic challenges ahead. The PSD remarked, "Given the forecast of weaker gross domestic product (GDP) growth and the downside economic risks, the public sector unions and the Government will jointly monitor the economic performance for the rest of the year, and will calibrate the year-end payments accordingly."
In addition to the bonus announcement, Acting Transport Minister Jeffrey Siow addressed pressing issues related to the Certificate of Entitlement (COE) system during a press briefing on June 11, 2025. Siow emphasized that no significant adjustments to the COE system are expected in the near term. This system, designed to manage vehicle ownership in Singapore, remains critical given the limited land space available for cars.
"The reality is there won’t be space for every Singaporean to own a car in Singapore," Siow stated, highlighting the government’s strategy for managing vehicle ownership as a scarce resource. He also noted that private-hire vehicles do not contribute to rising COE premiums, suggesting that their availability alleviates the pressure on potential car buyers by offering an alternative mode of transportation.
Furthermore, Siow discussed the need for all vehicles to be equipped with on-board units for the upcoming Electronic Road Pricing (ERP) system. This initiative aims to modernize the transport infrastructure while addressing the challenges posed by increasing vehicle numbers in a densely populated urban environment.
The discourse surrounding the COE system also touched upon concerns regarding the working hours of private-hire drivers. Following the unfortunate death of a driver, Gavin Neo, who reportedly worked extensive hours to support his family, Siow clarified that the Land Transport Authority (LTA) does not regulate the work hours for private-hire drivers. He acknowledged the varying needs of drivers and affirmed that the LTA would intervene only if private-hire accident rates surpassed those of regular vehicles.
As Singapore navigates a complex economic landscape characterized by uncertainty, the decisions made by government officials in terms of public sector bonuses and transport policies will be crucial in shaping the future of the nation’s workforce and infrastructure. The upcoming months will reveal how effectively these strategies address both economic pressures and transport challenges in one of the world's most densely populated cities.
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