There will be no pay raise for civil servants, public-school teachers and military personnel next year, the Directorate-General of Personnel Administration (DGPA) said yesterday.
In light of the nation’s economic situation being no better than it was last year and as the burden of high personnel costs has not improved, the agency said it had suggested to the Executive Yuan that there be no salary increases.
The Executive Yuan recently approved the suggestion.
The agency said that it has estimated the central government’s expenditure would be NT$214.3 billion (US$7.18 billion) more than its revenues next year, a situation even worse than the deficit gap last year and this year.
If the government decided to raise the salaries of civil servants, public-school teachers and military personnel next year, the deficit would widen further, it said.
The ratios of personnel costs as a percentage of the total expenditures of the central government and local governments currently are 21.7 percent and 22.34 percent respectively, the DGPA said.
A rise in salaries could also lead to greater personnel costs for private enterprises, pushing them to cut their workforce and resulting in rising unemployment, the directorate-general said.
The last pay raise for civil servants, public-school teachers and military personnel, a 3 percent salary hike, was on July 1 last year.