SINGAPORE TO CUT SALARY OF CIVIL SERVANTS DUE TO WEAK ECONOMY

SINGAPORE, (Bernama) -- The Singapore government announced that it would cut the salary of the President, Prime Minister and other senior government officials by 11 per cent to 19 per cent next year due to the country's weakened economy.
The Singapore Public Service Division (PSD) said the pay cut was necessary as close to 25 per cent of the annual salary components were linked to the city-state's economic growth.
Others who would also be affected by the salary cut included ministers and members of parliament, the PSD said in a statement.
It said there would be a 19 per cent fall in the annual salary of the President to $3.14 million and the Prime Minister to $3.04 million next year.
The ministers' salary would fall by 18 per cent to $1.57 million and the salary of certain levels of senior grade officials, by 12 per cent to $353,000.
The allowance for members of parliament will drop by 16 per cent to $190,000, said the PSD, which is under the Prime Minister's Office.
It said the government would also defer the third phase of the salary adjustments for administrative officers, and political, judicial and statutory appointment holders which should be due in January.
The January salary adjustment is supposed to be the third of three salary adjustments following two earlier rounds in April last year and January this year.
However, the civil servants would still receive the 13th month payment or annual wage supplement of one month, the PSD said.
Last year, Singapore introduced a mechanism that allows salaries of senior civil servants to respond more rapidly to the performance of the economy.