Civil service salary revision: Private firms largely unfazed, say they've already raised wages as economy reopened
SINGAPORE — Employers in the private sector have been revising their workers’ salaries and doling out wage increments since the start of the year as the economy reopened further in the midst of the Covid-19 pandemic.
This is why the move by the Public Service Division (PSD) to raise the salaries of civil servants is timely, economists and human resource professionals said.
A check with some private companies showed that they have increased the salaries of their employees through the first half of the year, with one firm saying that the increment has been as high as 20 per cent.
On Sunday, PSD announced that about 23,000 officers in the civil service’s generic schemes and related schemes will get a pay raise of between 5 per cent and 14 per cent from Aug 1.
Economists may agree with the need to keep salaries competitive especially in the midst of rising inflation, but they also expressed concern at how this might result in a tighter labour market.