This decision, together with earlier wage adjustments, will see their annual salaries shrink by 6 per cent to as much as 21 per cent this year, said the Public Service Division (PSD) on Thursday.

Those in senior positions will receive the biggest cut.

The PSD, which oversees civil service matters, explained that the lack of a mid-year bonus is because the variable payment is tied to economic conditions.

Hence, the zero mid-year payment for the 66,000 workers in the civil service, a move which is in line with the latest National Wages Council recommendations, the PSD said.

The council had on Wednesday called on employers to stick to guidelines issued six months ago: freeze or cut salaries ahead of laying off workers in a bid to save jobs in this recession.

The latest Government decision is in contrast to last year, when good growth led to civil servants receiving a mid-year bonus of half a month's pay plus a one-off special payment. The special payout, ranging from $100 to $300, was to compensate for higher inflation then.

As for a year-end bonus this year, the PSD said: 'The Government will decide... when Singapore's economic performance in the second half of 2009 is clearer.'

The labour movement and unionists backed Thursday's decision.

Madam Halimah Yacob, deputy secretary-general of the National Trades Union Congress, noted that many private- sector employees have suffered from cost-cutting measures such as pay cuts or a wage freeze.

Read the full story in The Straits Times on Friday.