Singapore is slipping further into an economic crisis, and as a result, civil servants and public officers will see the impact on their wages and bonuses this year.

No bonus and pay cuts

In a press release by the Public Service Division (PSD) on June 18, it was announced that civil servants will not be receiving any mid-year bonuses in 2020.

This decision was made by the PSD after consultations with public sector unions, in view of the current economic downturn brought about by the Covid-19 pandemic.

According to The Straits Times, this will affect Singapore's 85,000 civil servants.

Public officers in superscale grades will take a one-time pay cut as well, which will be either 0.5 month or one month, depending on the officer's seniority.

Trade and industry minister Chan Chun Sing stated in an internal note to public officers that they should "lead by example".

This follows a previous announcement in February of a 0.5 month pay cut taken by senior public service officers in key leadership positions.

These measures take into consideration recommendations by the National Wages Council (NWC), which called on employers and employees, especially management, to help reduce costs and save jobs.

Government will monitor the economic situation closely

PSD stated that the pandemic has taken an "unprecedented toll" on the country's economic situation both externally and domestically.

As such, the Ministry of Trade and Industry estimates that the 2020 GDP growth forecast has downgraded from the previous forecast of "-4.0 per cent to -1.0 per cent", to "-7.0 per cent to -4.0 per cent".

PSD added that total employment has also "contracted sharply".

Singapore's unemployment rates recently reached the highest in a decade to around 3.3 per cent among Singapore citizens and Permanent Residents.

Retrenchments have also risen in the past quarter.

PSD highlighted that the government "appreciates the hard work and sacrifices of public officers in the fight against Covid-19", and added that they will continue monitoring the economic situation.

With regards to year-end bonuses, the government will give special consideration for lower-wage workers, something which NWC recommended.

Top photo by Andrew Koay