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Civil servants to see pay, bonuses slashed

Date Posted: 2009-08-20

Civil servants are facing the worst payroll cutbacks since 2003, as the National Personnel Authority offered up cuts in both salaries and bonuses.

The agency is calling for a •154,000 annual pay cut for national civil servants, the most extensive since the •165,000 reduction six years ago. This is also the first reduction in both salaries and bonuses in six years. The measure is now before the Cabinet and the diet.

The Personnel Authority wants to reduce civil servantsí monthly paychecks by nearly 0.2%, the first time in four years itís asked the government to approve cutbacks. The agency says it needs to make the cuts to stay on a par with the private sector, which has reduced salaries during the global economic crisis.

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