Saturday, October 16, 2010

No bonus for civil servants

Have you ever wondered how big a Billion is? Can you imagine how big RM3.1 billion is and its effect on the National Debt.

Mathematically, 1 million seconds is about 11.5 days while 1 billion seconds is about 32 years.

Prime Minister Najib Razak said the government could not pay a month's bonus to the 1.2 million civil servants in Budget 2011 because it incurred an expenditure of RM3.1 billion.

As such, he said, the special financial assistance of RM500 for each civil servant was appropriate.

Najib said many quarters had lobbied to him to announce a month's bonus to the civil servants. But I would like to share with you ... that a month's bonus incurs an expenditure of RM3.1 million for the government. Personally, I would want to give a bonus but as a responsible finance minister, I cannot expend more than the national revenue.

"It is for this reason that I gave RM500 as a special financial assistance to civil servants," he said.

Najib announced a special financial assistance of RM500 for all civil servants from Grade 54 and below as well as contract officers and retirees. The payment will be made in December this year.

The prime minister said the aid could help civil servants cope with schooling expenses for their children at the end of the year.

He said that though no bonus was given, the government had proposed other incentives for civil servants, such as maternity leave of up to 90 days. These also benefitted women teachers, who made up almost 70 percent of the 400,000 teachers in the country, he said.

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