PERFORMANCE BONUS

Mr Low Thia Khiang asked the Deputy Prime Minister (a) whether he will disclose details of the performance bonus scheme for civil servants; (b) whether all civil servants are eligible for the bonus; and (c) how many civil servants received such bonuses in 1998, by categories of political appointments, personnel groups and grades.

BG Lee Hsien Loong: (a) The performance bonus scheme in the Civil Service was first introduced in the civil service in 1990 as part of the civil service's move to inject more flexibility in its wage system. At the same time, it allows the civil service to better reward officers who have performed well. The performance bonus is part of the total annual salary that an officer receives. The quantum of performance bonuses paid vary according to the assessed performance and substantive grade of the officer. The maximum quantum of performance bonus payable for the top grades is 9 months for the Legal Service and 6 months or less for all other civil servants and political appointment holders. However, fewer than 5% of officers are paid the top tier bonus rate. The majority receive the base rate, which varies depending on the grade and service of the officer. Under-performing officers are not paid any performance bonus.

(b) Currently, civil servants in intermediate timescale grades and above (about 5,300 in total) are eligible for performance bonuses. The scheme was introduced to these grades, in lieu of built-in salary increase, when salary comparisons showed that they had fallen behind private sector rates. Performance bonuses have not yet been extended to lower division officers as it may be difficult to differentiate the performance of officers at that level. However, as we gather more experience with the administration of the performance bonus scheme and the assessment of performance, we will progressively extend the scheme to lower division officers as well.

(c) A total of 4,995 civil servants, 31 political appointees and 19 statutory/judicial appointment holders received performance bonuses in 1998 for work done in 1997, as shown in the table below : Substantive Grade Number of Officers Political Appointees 31 Statutory & Judicial 19 Appointment Holders Superscale civil servants 613 Timescale civil servants 4,382