Amid the economic downturn and an increased unemployment rate caused by the Covid-19 pandemic, all of Singapore’s 85,000 civil servants will not receive any mid-year annual variable component (AVC) payment, in an announcement made by the Public Service Division (PSD) on Thursday (June 18).
In addition, there will be a one-time pay cut for superscale public officers and it will be either a half-month or one-month pay cut, in accordance with their seniority.
This comes on top of the earlier half-month pay cut taken by senior public service officers in key leadership positions, which was announced in February.
Based on latest estimates, the Ministry of Trade and Industry has downgraded the 2020 GDP growth forecast to “-7 to -4 per cent”, from the earlier forecast of “-4 to -1 percent”.
According to the announcement, it said that these measures take into consideration the recommendations of the National Wages Council (NWC) release in March this year, which 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. Many have gone beyond their call of duty to take on additional or expanded roles to support our 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,” added the PSD.
The government will continue to monitor the economic situation closely. In deciding on the year-end AVC payments later this year, the government will take into consideration the NWC’s recommendations to give special consideration for lower-wage workers.
Featured Image Credit: AFP
