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27 November 2009

Singapore: Civil servants to get smaller year-end payment package

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Singapore's 60,000 civil servants will get a modest one-off year-end payment of 0.25 month, capped at S$750, instead of the Annual Variable Component (AVC), reported the Channel News Asia.

This is the first time civil servants are not getting their AVC for the full year.

In its statement, the Public Service Division (PSD) said on Thursday that the rank-and-file staff will get the full 0.25 month payment while the S$750 cap will help maintain wage restraint. Civil servants will also receive their 13th month payment.

Singapore's economy is expected to shrink by 2 to 2.5 percent this year. Although there are signs of recovery, PSD said growth for the whole year is still negative and the outlook remains uncertain.

As such, the one-off payment is in line with the call by the tripartite partners to acknowledge employees' support for wage restraint and the work they have put in to help deal with the recession.

Even with the one-off payment and 13th month payment, the annual salaries of civil servants in 2009 will still fall by 8 per cent to 22 per cent, compared to the annual salaries in 2008. Those in senior positions will see the largest drop.

On top of that, the government will again defer salary adjustments for Administrative Officers, Political, Judicial and Statutory Appointment Holders.

Commenting on the year-end payment, Deputy Prime Minister and Minister in charge of the Civil Service, Teo Chee Hean, said the country's economy has yet to see a sustained recovery. Hence, the government was taking a cautiously optimistic and balanced approach in giving a modest one-off-year-end payment.


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