I obtained my degree (from an aussie university) while still serving in the civil service. Started with $1.8k, as a direct entry diploma holder.
Yes, definitely I have to suffer a pay cut in the private sector but I know that the pay increment will pick up as I gain more experience professionally as an engineer or anywhere that recognises my degree and experiences. Furthermore, if i want to pursue further studies, i don't foresee any career progression in the civil service even with a MBA, as part-time MBA is not recognised at all. So what's the point of pursuing higher education where civil service does not recognise the paper????