facebookNational Service (NS) Allowance to Increase From 1 July 2023: Can This Beat Inflation?

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290523_ Boosting Bravery and Wallets_ National Service Allowance to Increase From 1 July 2023 (5)

National Service (NS) Allowance to Increase From 1 July 2023: Can This Beat Inflation?

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Source: VividThree

Calling all national servicemen, it’s a mini celebration! ๐ŸŽ‰

From 1 July 2023, full-time national servicemen (NSF) in the Singapore Armed Forces (SAF), Singapore Police Force (SPF), and Singapore Civil Defence Force (SCDF) will receive a $125 to $200 increase in their National Service (NS) allowance, which is equivalent to 10.9% to 21.7% increase to support NSFs in their personal well-being.

This is timely, indeed.

After all, Budget 2023 was targeted at families, housing, workers, and a growing aging population, so it is only natural that the allowances of those protecting the nation are being reviewed.

Let’s find out about the changes below!


TL;DR: Latest NSF Allowances Based on Ranks and Vocations (2023)

RankNS Allowance
Singapore Armed Forces (SAF)Singapore Police Force (SPF)Singapore Civil Defence Force (SCDF)CurrentRevised (Jul 2023)
Recruit (REC)Trainee Special Constable (TSC)REC$630$755
Private (PTE) Special Constable (SC)PTE$630$755
Lance-Corporal (LCP)Special Constable 2 (SC 2)LCP$650$775
Corporal (CPL)CPLCPL$700$825
Specialist Cadet Trainee (SCT)-SCT$720$845
Corporal First Class (CFC)--$740$865
3rd Sergeant (3SG)Sergeant 1 (SGT 1)SGT 1$950$1,075
2nd Sergeant (2SG)Sergeant 2 (SGT 2)SGT 2$1,050$1,175
Officer Cadet (OCT) OCTOCT$910$1,035
2nd Lieutenant (2LT)Probationary Inspector (NSPI)2LT$1,150$1,275
Lieutenant (LTA)Inspector (NSI)LTA$1,330$1,455
1. The revised NS allowance reflected above includes a minimum vocation allowance of $75. Additional vocation allowance paid to national servicemen in selected vocations (e.g. combat vocations) are excluded from this table.

2. NSFs receive a 5% increment for every 12 months that they serve in that rank. NSmen receive a 5 to 10 % increment if they satisfactorily complete an NS activity in the preceding work year.

Source: Ministry of Home Affairs

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NSF Allowance Over The Years

This is not the first time an adjustment has been made.

In fact, three adjustments were made over the last ten years, the most recent being in March 2020 when allowances were increased by $70 to $120.

How Are NSF Allowances Calculated?

Your NSF allowance is made up of your monthly rank allowance + vocation allowance (previously known as combat allowance).

The higher your rank, the more responsibilities you presumably have. In other words, you will receive a higher allowance as you rise through the ranks.

To give you a sense of the figures, here is a breakdown of the allowance amounts over the years:

Year1990s - Jun 2002Jul 2002 - Jun 2006Jul 2006 - Dec 2008Jan 2009 - Mar 2012Apr 2012 - Nov 2015Dec 2015 - Feb 2020Mar 2020 - Jun 2023From Jul 2023
NSF Recruit$240$350$400$420$480
(+ $60 across all ranks)
$560
(+ $80 across all ranks)
$630
(+ $70 to $120)
$755
(+ $125 to $200)
Private (PTE) / Special Constable (SC)-$420$480$560$630
(+ $70)
$755
(+$125)
Lance-Corporal (LCP) / Special Constable 2 (SC 2)-$440$500$580$650
(+ $70)
$775
(+$125)
Corporal (CPL)-$490$550$630$700
(+ $70)
$825
(+$125)
Specialist Cadet Trainee (SCT) - SAF & SCDF Only-$510$570$650$720
(+ $70)
$845
(+$125)
Corporal First Class (CFC) - SAF only-$530$590$670$740
(+ $70)
$865
(+$125)
3rd Sergeant (3SG) / Sergeant 1 (SGT 1) - SAF only-$740$800$880$950
(+ $70)
$1,075
(+$125)
2nd Sergeant (2SG) / Sergeant 2 (SGT 2)-$840$900$980$1,050
(+ $70)
$1,175
(+$125)
Officer Cadet (OCT) -$700$760$840$910
(+ $70)
$1,035
(+$125)
2nd Lieutenant (2LT) / Probationary Inspector (NSPI)-$940$1,000$1,080$1,150
(+ $70)
$1,275
(+$125)
Lieutenant (LTA) / Inspector (NSI)-$1,120$1,180$1,260$1,330
(+ $70)
$1,455
(+$125)
Note: Additional vocation allowance paid to national servicemen in selected vocations (e.g. combat vocations) are excluded from this table.

The figures used in this table refer to the base quantum of the rank allowance for each rank. NSFs receive an increment equal to 5% of the base quantum of that rank for every 12 months that they serve in that rank. NSmen receive an increment equal to 5% or 10% of the base quantum of that rank, if they satisfactorily complete an NS activity in the preceding work year.

Source: Ministry of Defence Singapore

To be fair, this is by far the highest increase in allowance we’ve seen over the years.

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Allowance Vs Inflation Rate in Singapore

Now, here’s the question that’s on everyone’s mind: Isย the increase in allowance sufficient to cover the rise in cost in Singapore?

For the uninitiated, Singapore’s Core Inflation Rate (sometimes called Headline Overall inflation or Consumer Price Index) as of April 2023 (year-on-year) was hovering at 5.7%, whereas the Monetary Authority of Singapore’s (MAS) Core Inflation (excludes accommodation and private transport costs) was 5.0%.

By now most of us have been dealing with both rapid inflation and an expenditure increase in most of the goods and services we consume due to the increase in Goods and Services Tax (GST).

The increment this round is estimated to be between 10.9% and 21.7%. Just looking at an NSF recruit’s allowance (because it’s the lowest among the lot), ceteris paribus, the percentage increase would’ve kept up with both the CPI and MAS Core Inflation.

On a surface level and in the most ideal situation, you would be anticipating that the allowance raised can outweigh the rising cost of living, and you might not see a decrease in your purchasing power.

YearHeadline Overall Inflation / Core InflationMAS core InflationNSF Recruit Allowance Percentage Change Only
20170.6%1.5%$560 to $630
(+ 12.5%)
20180.4%1.7%
20190.6%1.0%
2020โ€0.2%โ€0.2%$630 to $755
(+19.8%)
20212.3%0.9%
20226.1%4.1%
2023 (Apr 2023)5.7%5.0%

However, we know that life loves to throw curveballs. If you’re only using the allowance on a weekend and solely on yourself, you’re considered really lucky.

But if you are spending beyond your means, this raise would never be enough. The key here is to make do with the limited resources you have and plan your finances in advance.

Read more:

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Other Government Payouts You Need to Know Regardless of Age

This might or might not concern you with the many changes in government policies, but in case you feel overwhelmed by the sheer number of schemes.

If that’s the case, this is a guide to checking your benefits.

 


Is This Increase Too Much or Too Little?

Before anyone starts commenting about the amount, while it doesn’t seem like it’s a lot of money, if you pair your allowance with the CDC vouchers that have been given out to Singaporean households, you can actually buy many plates of chicken rice from the hawker center.

I’m not asking you to only eat the cheapest food of course. What’s life if we don’t indulge a little?

It’s just that the Ministry of Defence has mentioned a few times that NS is a duty and not a job, so we will leave this quote here for you to ponder:

The National Service (NS) allowance is meant to support our full-time National Servicemen (NSFs) for their basic personal upkeep, which takes into account the accommodation, food and uniforms that the Singapore Armed Forces, Singapore Police Force, and Singapore Civil Defence Force provide for them. In addition, the NS allowance also recognises National Servicemen with heavier responsibilities, such as those in command positions. The allowance and rank pay of National Servicemen should not be computed as salaries, as NS is a duty and not a job.

Teo Eng Dih, Director (Manpower), Ministry of Defence, inย  response to TODAY’s Forum Letter on “Why did panel decide not to raise NS allowance?” in 2014

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About Hui Juan Neo
A savvy shopper and foodie at heart, I'm always on a lookout for discounts and deals to snag the best bargains.
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