Government Sector to See Pay Cut

Political appointment holders and civil servants to see drop in total annual salaries this year by 20% instead of the earlier announced 19%. This cut should consider removing bonuses and not reduction on the monthly salary to minimize impact. Civil service sector is Singapore's single largest employer.

The Minister-in-charge of the Civil Service Teo Chee Hean said the MR4 salary for 2009 will now be S$1.54 million, a drop of 20 per cent compared to 2008. Salaries at SR9 will now be S$351,000, a drop of 12 per cent compared to 2008. This is in line with the Trade and Industry Ministry's latest gross domestic product growth estimate of 1.5 per cent for year 2008.

Salaries of political appointment holders and civil servants are linked to economic performance. The above mentioned numbers may be adjusted again depending on how year 2009 performs.

Current economic situation is indeed very gloomy. I hope those affected will be able to cope with the cut. It is still uncertain if government-linked companies (GLC) will follow.