Up to 19% pay cut for top officials; lower year-end bonus

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SINGAPORE: The Civil Service will cut the pay of ministers and senior officials by up to 19 per cent next year in view of the slowdown in the global economy and in Singapore, says the Public Service Division.

In addition, civil servants will receive a total variable payment this year which is one month less than last year.

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 one month.

As such, the total AVC and 13th month payment for civil servants in 2008 is two months plus S$100 to S$300. This is one month less than the total paid out in 2007 - which was three months plus S$220 including the Growth Bonus.

The government has also decided to defer the third phase of pay adjustments for Administrative Officers, political, judicial and statutory appointment holders which were due in January 2009. This group of officers will see a pay drop of up to 19 per cent in 2009 because of salary components which are linked to Singapore's economic growth.

The January 2009 salary adjustment would have been the third of three salary
adjustments, following two earlier rounds in April 2007 and January 2008. 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.

Salaries for Administrative Officers, political, judicial and statutory appointment holders will fall in 2009 because a significant percentage of their annual salaries (close to 25 per cent of the annual salary in 2008) comprises variable payments linked to the GDP growth of Singapore. With a weak economy, these components will automatically fall.

This group of civil servants will see a drop of between 11-19 per cent in their annual pay, 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 S$3.14m and the Prime Minister to S$3.04m.

The Ministerial Grade (MR4) salary will fall by 18 per cent to $1.57m, and salaries at the entry Superscale grade (SR9) will fall by 12 per cent to S$353,000.

The allowance for Members of Parliament will fall by 16 per cent to S$190,000.

The National Trades Union Congress (NTUC) says that the half-month year-end civil service bonus is in line with the deepening global crisis and slower economic growth that Singapore is facing.

NTUC Deputy Secretary General Halimah Yacob said the labour movement is still grateful for the payout, which will help civil servants cope with year-end expenses, especially the lower wage groups who are most affected by the higher cost of living.

She added that the feedback from unions has been positive, as they too are poised for tougher times ahead.


So, thats how much our President and Prime Minister is earning huh?

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