The Cabinet has decided civil servants, military personnel and public school teachers will not get a salary increase next year, Executive Yuan spokesman Sun Lih-chyun (孫立群) said yesterday.
Sun said the Cabinet had earlier thought about a salary hike, because the economy was performing well at the time and workers in the private sector were getting pay raises.
However, an analysis of economic data showed that a salary increase was not necessary, he said. Furthermore, the recent economic downturn has prompted the Cabinet to drop the proposal, Sun added.
According to previous Executive Yuan estimates, it would cost the central and local governments about NT$7 billion (US$214.59 million) to raise public sector wages by 1 percent — or NT$21 billion for a 3 percent pay raise.
Public sector workers received a 3 percent wage increase in July 2011 and the central government subsidized local governments with NT$5.27 billion for personnel expenses for the second half of that year.
According to the latest report by the Ministry of Civil Service, local governments’ combined personnel expenses totaled NT$497.9 billion in 2013, which accounted for 47.84 percent of their total expenditures for that year.
Payrolls took up more than half of the total expenditures of the governments of Taipei and Kaohsiung; the cities of Keelung, Hsinchu and Chiayi; and Changhua, Nantou, Pingtung, Hualien and Taitung counties, according to the ministry’s report.
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