BY KENNY CHEE

IN THE wake of a worsening economic climate, senior civil servants will take a pay cut of up to 19 per cent next year.

They include political, judicial and statutory appointment holders as well as ministers.

This move was made because of 'the likelihood that salaries will be lower next year'. Next January's adjustment will be the third time that civil- service salaries are adjusted after the changes made in January and April.

PSD explained that as the economy weakens, the salaries of senior government officers will 'automatically fall'.

This is because a significant proportion of their annual pay is linked to 'the gross domestic product growth of Singapore'. For this year, the amount comes up to almost 25 per cent of the annual salaries of senior civil servants.

Mr Teo Chee Hean, Minister for Defence and Minister in charge of the Civil Service, said that 'this mechanism allows salaries to respond more rapidly to market conditions'.

Next year, the President's annual salary will drop by 19 per cent to $3.14 million. Similarly, the Prime Minister's pay will fall to $3.04 million.

Salaries for ministerial-grade officers will be cut by 18 per cent to $1.57 million.

The pay for superscale-grade officers like administrative officers will be trimmed by 12 per cent to $353,000.

The allowance for Members of Parliament will drop by 16 per cent to $190,000. PSD said that the pay for top civil servants is benchmarked to the private sector.

The benchmark is based on the annual salaries of six professions - bankers, lawyers, accountants, engineers, employees of multinational corporations and local manufacturers.

For instance, the benchmark for the Ministerial Grade is two thirds of the median pay of the top-eight earners in each of these six professions (see box). The six professions were chosen as they represent alternative jobs that top senior civil servants could have undertaken.

The annual variable component of the year-end payment for all civil servants will fall by half a month, compared to one month last year. Also, there will be no Growth Bonus this year compared to the half- month bonus last year.

But the 13th-month payment will continue to be paid out. In total, civil servants will receive two months plus $100 to $300, consisting of the annual variable component and the 13th-month bonus.

This is one month less compared to the total payout last year of three months plus $220.

A civil servant, 27, who did not want to be named, applauded the move: 'I see it as leading by example. Ultimately, we are living in the same country. We have to make it through thick and thin together.'

Research executive Elaine Chow, 26, said the move is 'in line with the Government's call to cut costs to save jobs'.

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