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SINGAPORE: Lower- and middle- income civil servants are heaving a sigh of relief that their take-home pay has not been cut.
Although bonuses are reduced, union leaders said the amount is enough to help civil servants cope with year-end expenses.
They also said the reduction is expected since the year-end bonus is pegged to the economy - which has been badly hit in recent months.
NTUC Deputy Secretary-General Halimah Yacob said: "The general sentiment is that they understand the situation. They knew that the situation is bad, and therefore, one cannot expect the same amount of good bonuses as last year. Of course, there were also concerns.
"For the middle- and lower-end, since there's no cut in basic pay, the impact is not as significant to them. The total pay depends on the bonus. It's still a reasonable and acceptable amount."
But high-ranking civil servants may feel a greater impact.
"If last year, you were paid 15 months - 12-month pay, 3-month bonus - this year, your 19% would be equivalent to losing all that 3 months bonus," said Bob Tan, vice-president of Singapore National Employers' Federation (SNEF).
The SNEF said the cut is in line with what is expected in private sector pay reductions in 2009. Despite lower salaries, the Civil Service may still attract top talent.
"I don't think the private sector would be out competing for the talent that's residing in the public sector. If anything else, I think if you are in the public sector, you at least have an employer that is sound, whereas in the private sector, some companies are folding up," said Mr Bob Tan.
Looking ahead, observers said they expect the government to only adjust the salaries of top ranking civil servants in the next two to three years, when the economy is expected to pick up again.
- CNA/ir
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