SINGAPORE: Civil servants in Singapore will not receive a mid-year bonus this year amid the "unprecedented economic crisis" brought about by COVID-19, said the Public Service Division (PSD) on Thursday (Jun 18).
The last time there was no mid-year bonus for civil servants was in 2009, during the global financial crisis.
AdvertisementAdvertisementPublic officers in "superscale grades" will also take either a one-time pay cut of half or one month depending on their seniority, said PSD in a media release.
This comes after senior public service officers in key leadership positions took a half-month pay cut, which was announced in February.
[h=3]READ: The economic impact of a pandemic: ‘Without COVID-19, we would be doing ok’[/h][h=3]READ: Singapore's GDP expected to shrink between 4% and 7% as 2020 growth forecast cut again on COVID-19 impact[/h] AdvertisementAdvertisementAccording to a written reply to a parliamentary question in November 2018, Trade and Industry Minister Chan Chun Sing said superscale officers comprise about 1.9 per cent of the civil service. The monthly salary for senior management superscale officers starts from about S$11,000, he added.
"The Public Service stands in solidarity with the rest of the nation during this difficult period," said PSD.
"Against the backdrop of a worsening economic outlook, and in close consultation with the public sector unions, the Government has decided that there will not be any mid-year annual variable component (AVC) payment to civil servants this year."
PSD said the measures take into consideration the recommendations of the National Wages Council, which in March called on employers and employees to do their part, with management taking the lead, in helping to reduce costs and save jobs.
"The Government appreciates the hard work and sacrifices of public officers in the fight against COVID-19, including those working on the frontline and behind the scenes," said PSD.
It added that many have gone beyond their call of duty to take on additional or expanded roles to support workers, businesses, and fellow Singaporeans in "weathering the economic uncertainties and adjusting to the new normal".
Government agencies will make different efforts to appreciate and recognise the good work of officers, said PSD.
In deciding on the year-end bonus payments later this year, the Government will take into consideration the National Wages Council's recommendations to give special consideration for lower-wage workers, PSD said.
[h=3]READ: Singapore’s circuit breaker and beyond: Timeline of the COVID-19 reality[/h][h=3]READ: Singapore will enter a recession this year, ‘significant uncertainty’ over duration and intensity: MAS[/h]"The COVID-19 pandemic has taken an unprecedented toll on the economic situation both externally and domestically," said PSD.
Based on the latest estimates, Singapore’s gross domestic product is expected to shrink between 4 per cent and 7 per cent this year, down from the previous projected range of a contraction between 1 per cent and 4 per cent, the Ministry of Trade and Industry said last month.
The labour market is also weakening, added PSD, with total employment (excluding foreign domestic workers) for the first quarter this year contracting sharply.
PSD said resident and citizen unemployment rates continued to rise in March 2020, while retrenchments rose over the first quarter of this year.
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