Civil servants get another 6.7% raise

Starting next year, civil servants will enjoy another 6.7% pay raise.

The government raised the salaries of civil servants 6.7% earlier in the year, then by setting aside another 480 billion won for a salary reserve fund, gave a 3% increase in pay in July, for a total 9.7% increase.

Payrolls for civil servants next year also will include merit-based bonuses depending on their accomplishments, as well as greater support for salary-transference for elementary, middle and high school teachers -- all in all an increase of 16.5%.

A source at the Ministry of Planning and Budget revealed Tuesday that the pay rates for civil servants would be raised to about 95.3% of the level of mid-sized business executives and employees. It will be on par with the private sector by 2004 through graduated pay increases.

The source also said that the government has decided on a 5.5% base-pay increase and will break down the 200% year-end bonuses into monthly installments paid along with their base salaries.

In addition, the government has earmarked 200 billion won for a reserve fund to be used to provide another pay raise for civil servants in step with the pay hikes expected in the private sector during next year. The proposed reserve fund of 200 billion won translates into a possible mid-year raise of 1.2% should the fund be retroactively calculated as being in an interest-bearing deposit from January.

For civil servants below the level of department head, the government will provide a merit-based bonus of 50% to 200% of salary to those above the 50% mark in work-performance.