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SINGAPORE: Over 60,000 civil servants in Singapore will not be getting any mid-year annual variable component this year. The Public Service Division said this is due to the uncertain economic outlook.
The Ministry of Trade and Industry has maintained its GDP growth forecast for this year at minus six to minus nine per cent.
The decision not to pay any mid-year bonus is also in line with the National Wages Council recommendations released on Wednesday.
The annual variable component is an aspect in the flexible wage structure that is adjusted to reflect economic conditions.
The decision of not having a mid-year payment for civil servants, together with cuts made previously, will see annual civil service salaries this year drop by six per cent to 21 per cent compared to 2008. Those in senior positions will receive the largest reduction.
Singapore's labour movement said many private sector employees have already been affected by cost-cutting measures like pay cuts and wage freeze.
The government's latest decision not to pay any mid-year bonus will align the public sector with what is already practised in the private sector during these difficult times.
In a statement, the labour movement and its eight unions affiliated to the civil service said they support the government's decision.
NTUC's Deputy Secretary General, Halimah Yacob, said public sector employees understand that during such challenging times, it will not be possible for them to insist on being paid the mid-year bonus.
As for the year-end bonus for civil servants, the government said it will decide on this when Singapore's economic performance in the second half of the year is clearer.
G Muthukumarasamy, general secretary, Amalgamated Union of Public Daily Rated Workers (AUPDRW), said: "AUPDRW understands that the current economic downturn has affected countries worldwide and Singapore is facing an unprecedented recession.
"AUPDRW therefore supports the decision of zero mid-year payment. I am sure that our members and workers understand the challenging economic situation that we are in and the need for a cautious approach to be taken in view of an unstable and unpredictable global economic situation.
"In fact, we are grateful that there has been no retrenchment and pay cut in the public sector, as compared to the private sector employees.
"With everyone taking the necessary steps during a downturn, we believe that when the economy recovers, we will be able to bounce back faster, and our workers will be recognised and appreciated for their contributions and efforts." - CNA/vm
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