While expressing thanks to retired public-sector employees today for contributing the prime of their lives to the nation, Premier Chen said that on account of the recent financial difficulties of many citizens, which has also exacerbated the government's fiscal challenges, and public opinion, the year-end bonus for most public-sector retirees would be suspended this year.
The distribution of year-end bonuses for military, civil servants and public school teachers is reviewed annually and depends on the government's fiscal situation, the Executive Yuan said.
Since 1972, the government has issued "the notification for the distribution of year-end bonuses for incumbent and retired civil servants, public school teachers and military personnel" (hereafter referred to as "the notification") annually and included related expenses in its yearly budget, which is sent to the Legislature for review and approval, the Executive Yuan indicated.
Toward the end of each year, the Directorate-General of Personnel Administration (DGPA) convenes a meeting with the Ministry of Finance, the Directorate-General of Budget, Accounting and Statistics and local governments to discuss the government's financial responsibilities. After they reach a consensus on the bonus, the notification is issued and sent to the Executive Yuan for approval.
The amount of the year-end bonus has varied year to year depending on economic conditions and the government's finances. In 1974, this bonus was not issued at all due to the government's financially straitened circumstances.
This compensation is completely legal, the Executive Yuan affirmed, citing Judicial Yuan Explanations No. 391 and No. 520, which state the bonus is budgeted and sent to the Legislature for review and approval each year.
The government's decision on this year's bonus is based on the principles of taking national finances into account and protecting the disadvantaged. It moved quickly on the issue to prevent the issue from causing social division.
Premier Chen has instructed the DGPA to study legislators' suggestions that the distribution of bonuses to government retirees be enshrined in law rather than reviewed annually.