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.'