[2021 Budget] Civil Servant Wage Increase Rate 0.9%... Senior Executive Service Frozen

Wage Freeze for Senior Officials Above High-Level Public Service Group at 1.9 Percentage Points Lower Than Last Year's 2.8% Level

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The civil servant wage increase rate for next year has been set at 0.9%, the lowest level since the freeze in 2010 following the financial crisis. Additionally, wages for senior executive service members and above will be frozen.

According to the '2021 Budget Proposal' announced by the Ministry of Economy and Finance on the 1st, the government decided on a 0.9% wage increase rate for civil servants next year. This is 1.9 percentage points lower than last year's 2.8%.

In recent years from 2015 to 2017, the wage increase rates were 3.8%, 3.0%, and 3.5%, all in the 3% range. The government set a low wage increase rate for civil servants to share the burden caused by the COVID-19 pandemic.

With rising unemployment and decreasing national tax revenues due to COVID-19, the intention is for civil servants to lead by example.

Andogul, Director of the Budget Office at the Ministry of Economy and Finance, explained in a briefing, "The Civil Service Salary Committee recommended a 1.3~1.5% increase this year, but we decided on a lower rate," adding, "We have decided to maintain a freeze policy for three consecutive years from 2019 through next year."

Expenses directly used by civil servants will also be significantly reduced. The government plans to boldly cut four major recurring expense items directly used by civil servants and the operating costs of 166 government-supported and affiliated institutions.

Accordingly, the four major recurring expenses of central government ministries were reduced by 44.3 billion KRW (6.2%), and the operating expenses of supported and affiliated institutions were cut by 42.1 billion KRW (7.1%).

This content was produced with the assistance of AI translation services.