SINGAPORE: The committee reviewing Singapore ministers' salary has recommended cuts of up to 53 per cent -- the biggest reductions since salaries of office holders were pegged to private-sector pay in 1994.
This was disclosed on Wednesday by Ministerial Salary Review Committee chairman Gerard Ee at a news conference.
The eight-member committee was appointed by Prime Minister Lee Hsien Loong after the General Election last May.
The committee said the new pay formula is "more transparent and Singapore-centric". Describing the pay reductions as "severe" and "substantial", the committee said it was fully aware of the impact the cuts will have on the government's ability to attract talents.
But ultimately, the committee believes the recommended salary is a "reasonable" figure. The committee said it was guided by three principles.
Mr Ee said: "While it is a severe cut, (the pay) should be able to attract, not all, but some of the talents to come forward, but preserving the message that you're coming forward to serve in a political capacity and there are some sacrifices to be made."
Committee member and NTUC president John De Payva acknowledged the pay cuts will have some impact on the government's ability to attract top talents from the private sector.
"There is a significant cut and you've seen from the last general election, we could hardly get anyone from the private sector," he said. "So it's going to be a challenge and the emphasis is now going to be how strong is your calling to want to come and serve the nation."
CEO of Venture Corporation Wong Ngit Liong agrees. "This will be the real test that leaders stepping forward will be those that are keen in making great contribution to society and to Singapore at large."
The committee met 10 times over seven months, poring through hundreds of recommendations, including those made by past office holders, opposition MPs, academics and the man in the street.
The proposed pay formula takes into account a wider pool of top earners.
It is based on the median salary of the top 1,000 earners, who are Singapore citizens, with a 40 per cent discount.
The committee said with the discount, the pay is actually closer to the top 1,400th earner.
The discount is to reflect the ethos of political service.
Currently, ministerial pay is calculated based on the median salary of the top 48 earners of only six professions, with a one-third discount.
The committee recommended pensions be scrapped, and the GDP Bonus be replaced with a National Bonus that takes into account the socio-economic progress of Singaporeans.
That includes the real median income growth rate, the real income growth rate of the bottom 20th percentile and the unemployment rate of Singapore citizens as well as the real GDP growth rate.
Ministerial Salary Review Committee member Stephen Lee said: "It is quite logical to say that the minister's bonus can go up if Singaporeans, especially the medium and lower 20th percent, are also doing better."
So if the new formula is applied, the prime minister's pay will be revised to S$2.2 million from S$3.07 million a year -- a 36 per cent pay cut.
Ministers' annual pay will be reduced by 37 per cent to S$1.1 million, while a junior minister's annual salary could start at S$935,000.
The president's pay will be cut by 51 per cent to S$1.54 million.
The Speaker of Parliament will get the deepest cut of 53 per cent to S$550,000 a year.
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Ministerial Salary Review - Press Conference Q & A Part 1 Jan 4 2012by TODAYdigital930 views
government intends to adopt the pay cut? what? adopt? shut up la. more like we SHOVED it down your throat, like how you shoved rubbish policies down ours. mark my words, in 2016, PAP will lose much more than what they have lost in 2011, their end is near, singaporeans will not remain blind and stupid forever.
Nubbienub 1 month ago
Prime minister's pay revised to S$2.2 million from S$3.07 million a year -- a 36 per cent pay cut. Ok la, never mind. I'll take it. I've changed my mind. I'll call that a hugh reduction. Who knows? Maybe one day I will be the next Prime Minister and then I too can get to smell that kind of money. Well, maybe not me. But my children can stand a chance to be one? Or maybe you and/or your children can be PM too? WoW! We'll be rich. No, we'll be super rich! Yippeee!!!
sg8888888 1 month ago
Hello, ladies & gentlemen, don't forget politicians are here to sacrifice their life, livelihood and their virginity (where possible) for the country and people. They're not suppose to be mercenaries where they want millions in advance and millions later when they finished their job. If you want to be a politician, can you accept a low, low, low salary? Will you give up everything for the country & people? Can you give what the people want? Will you help the sick, poor & needy? If all YES, ok.
sg8888888 1 month ago
I wouldn't say its a hugh decreased since the so-called decreased salary is still way ahead of the rest of the world's leaders. It should include median salary of 193 countries leaders in the United Nation, then median salary of local top 1000 earners with a 70% discount, then "includes the real median income growth rate, the real income growth rate of the bottom 20th percentile and the unemployment rate of Singapore citizens as well as the real GDP growth rate." Its a sensible reduction.
sg8888888 1 month ago
state controlled media
karmlan123 1 month ago