Monday, November 24, 2008

Breaking News : Civil Service pay cuts!!!

Just out 15 minutes ago.

Lets see some leadership!
I hope this is a leadership move and not driven by losses in some American bank.
Civil service to cut pay
*Civil servants to get lower year-end payment in 2008 *Up to 19% drop in senior civil servants' pay in 2009 *Ministers' pay and MPs' allowance to be slashed too

Civil servants will still receive the 13th month payment, or Annual Wage Supplement of 1 month. -- ST PHOTO: FRANCIS ONG
THE Civil Service will cut pay of ministers and senior officials by up to 19 per cent next year, and the year-end payment for 2008 by one month in view of the slowdown in the global economy and in Singapore, the Public Service Division announced on Monday.
The year-end Annual Variable Component (AVC) will be reduced to 0.5 month, from one month last year. There will be no special Growth Bonus this year, unlike in 2007 when a special Growth Bonus of 0.5 month was paid.
Civil servants will still receive the 13th month payment, or Annual Wage Supplement of 1 month.
As such, the total AVC and 13th month payment for civil servants in 2008 is two months plus $100 to $3001. This is 1 month less than the total paid out in 2007 which was three months plus $220, including Growth Bonus.
The Government has decided to defer the third phase of the salary adjustments for Administrative Officers, Political, Judicial and Statutory Appointment Holders which was due in January, said the PSD.
This group of officers will have their pay cut by up to 19 per cent in 2009 because of salary components which are linked to Singapore's economic growth.
The January salary adjustment would have been the third of three salary adjustments, following two earlier rounds in April 2007 and January this year.
'In view of the clouded economic outlook and the likelihood that salaries will be lower next year, the Government has decided to defer the January 2009 salary adjustment,' said the PSD statement..
Bonus paid for the exceptional economic performance will fall in 2009 because a significant percentage of the pay for this group of civil servants (close to 25 per cent of their annual pay) comprises variable payments linked to the GDP growth of Singapore.
With a weak economy, these components will automatically fall. This group will see a drop of between 11-19 per cent in their annual salaries, bringing their salaries below the levels in April 2007.
Specifically, in 2009, there will be a 19 per cent fall in the annual salary of the President (to $3.14 million) and the Prime Minister (to $3.04 million). The Ministerial Grade (MR4) salary will fall by 18 per cent to $1.57 million, and salaries at the entry Superscale grade (SR9) will fall by 12 per cent to $353,000.
The allowance for Members of Parliament will fall by 16 per cent to $190,000.
Commenting on the salary drop, Mr Teo Chee Hean, Minister for Defence and Minister in charge of the Civil Service said: 'Public sector salaries follow the market up and down.
'The mechanism we introduced last year to link a significant proportion of the salary of senior civil servants to the performance of the economy is working as intended. This mechanism allows salaries to respond more rapidly to market conditions.'


AlphavilleSG said...
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Anonymous said...

during good times, it took so long to recover salary. but when times are bad, it is so fast do have pay cut.

the top people make mistakes, the bottom people have to suffer. the problem is these people at the bottom dont even have any idea what is the real reason for the paycut.
thanks to our media, they have no idea how much is lost for the 4 banks our genius has invested, they have not even heard of ABC learning.

Anonymous said...

2-3 million a year, pay cut 19% is no big deal, their daily lives wont be affected.

but those who are struggling with less then $2k a month will be the one suffering, even a 5% is alot of them.

me said...

watch the front page of Straits PAP Times tomorrow. This, together with the Citibank bailout, would be definitely on it. the spin doctors are already hard at work as we speak.

time for elections, people.

Anonymous said...

Only "up to 19%" cut for these million dollar ministers? Is this not grandstanding or what lol!

Onlooker said...

Too late for them.
There will NOT be a depression because of the free flow of information.
People will know as soon as the news (from the affected banks) is released in the States.
If I remember correctly some of the minister's children are employed in those banks and affected financial institutions.
Also Dubai stock fell by 5% unfortunately.....

Daniel Ling said...

Deferred? this mean if the Economic Outlook changes for the better, there may still be a Raise? Hmm wat if like the Budget 2006? Or was it 2007? When the Forecast was Bad but the Actual Turnout turned out to be good. =X
1.2m + 83% Increase = 2.2m
25% Variable Payment of 2.2m = 550k
19% Max Pay Cut of 2.2m = 418k
2.2m - 550k - 418k = 1.232m

how would their pay fall below Apr 2007

Anonymous said...

how about asking these elites to decrease the gst like what britain is doing to theirs now?

Anonymous said...

To decrease gst, they will need to increase taxes for the rich (i.e themselves).

The chances of that happening is ...

The ministars already had their pay rise and still getting a bonus which most in the private sector will not.

What pay cut?

movie buff said...

my initial thought upon hearing about Citibank's potential bankrupcy was, Yipee! this will cancel out the small fortune's worth of debt I have stored up on my trusty Citi-card... right?

Anonymous said...

at least they down their salary for now and this is better than they up their salary now.....

kein said...

The salary cut for top government personnel sounds like a step in the right direction.

Anonymous said...

fr e news i read..they are reducing bonus..not exactly paycuts whilst in private sector..pple lost their jobs or ven has no bonus or no payrise next year.i think govt sector still enjoy their payrise next year?

Anonymous said...

well, just wait and see...the pay cut up to 19% is only 'peanut'. But when the economy is getting better, the increment will not be mere 19%, but 190% or more.

Anonymous said...

I'm confused... is there a paycut at all? IIRC PM's salary was last raised in April 2007 to S$3m, and now they announce that his salary is going to be cut by 19% to... S$3m? So where's the cut? Or is there another round of salary increase that I'm not aware of?