Part of their annual pay is linked to growth rate of gross
domestic product
The inevitable decline was indicated by the Public Service
Division (PSD) yesterday when it responded to media queries on
whether the civil service would be making a salary revision.
No decision had been reached on any revision, it said in a
statement, as data on private-sector salaries was still being
compiled.
'Given the recent turmoil in the financial markets and revised
economic forecasts, the PSD will need some time to study the data
and salary trends before coming to a decision,' it added.
The PSD, a department in the Prime Minister's Office that
oversees civil service matters, said the salaries are reviewed and
revised regularly to keep them in line with the private
sector's.
It noted that a 'significant part of a senior civil servant's
annual pay' is in the form of a GDP Bonus, which is linked to the
gross domestic product's growth rate.
'If the GDP growth rate falls, the GDP Bonus will also fall,
resulting in a reduction in the annual salaries of senior civil
servants,' the PSD said in a statement.
The bonus applies to administrative officers, senior civil
servants and political, judicial and statutory appointment
holders.
It is paid out in March each year, based on the GDP growth rate
of the preceding year.
It was introduced in 2000 and, last year, was revised to form 20
per cent of the annual pay of top officials.
This bonus is three months if the economy grows by 5 per cent
and can go up to eight months should growth hit 10 per cent or
more.
However, it is zero if the economy grows by 2 per cent or
less.
Given the official forecast of an economic growth rate of around
3 per cent this year, top officials are likely to get a GDP Bonus
of one month.
This year will also see an adjustment in the salaries of top
civil servants and ministers by year's end.
This third round of pay adjustments was announced in April
2007.
The Government said then that it planned to make further changes
to bring annual salaries of ministers at the entry-level grade of
MR4 to 88 per cent of the benchmark by the end of this year.
The benchmark is set at two-thirds of the median pay of the top
eight earners in each of six sectors: banking, law, engineering,
accountancy, multinational corporations and local
manufacturers.
