Senior civil servants will get 8 months of GDP Bonus this year. This was announced in Parliament yesterday by DPM Teo Chee Hean.
Annual salaries of senior officers in government are “automatically linked” to GDP growth. When GDP growth is 2% or below, the bonus will be zero. As such, these senior civil servants did not get the GDP bonus in the past 2 years.
However, the 8 months bonus to be given out this year more than makes up for their “loss” in 2009 and 2010, in my opinion.
There’s also a curious fact that emerged from what DPM Teo said (emphasis mine):
“GDP Bonus … accounts for a maximum of one-quarter of the annual salary of senior officers, or eight months, when the GDP growth exceeds 10 per cent.”
This implies that the total annual salary of senior officers is actually 8 months x 4 = 32 months!
Suppose an administrative officer (AO) who’s in the lowest superscale grade of SR9 earns $18,240 per month (this figure was for 2008; it should have gone up by now).
Does this mean he will be getting an eye-popping $583,680 this year?
Take note that some of these AOs are around 32 years old only! It’s the reason why their salaries are pegged to the 15th top earner aged 32 years belonging to 6 selected professions.