Saturday, January 07, 2012

Cut in Ministers' Salaries

The Ministers have accepted a 36% cut in their salaries. The cut was higher than what most Singaporeans had expected, based on the survey carried out by me earlier. 76% had expected no cut or a cut of less than 25%. The results of the survey can be found here.

We have to acknowledge that the Government had taken an important first step to address the concerns of the people and that the review committee had done a good job in drawing a fine balance between the difficult conflicting requirements. While the revised salaries are still high by international standards, they are not high by Singapore standards, where chief executives, lawyers and doctors are earning much more.

Our challenge is to reduce the cost of living for the ordinary citizens. Let us focus on this important task, and do not be too distracted by the salaries of our political leaders. Let us give them the support to address the key challenge.

14 comments:

Tan Kin Lian said...

I find the personal attacks against Grace Fu to be unfair and excessive. Grace Fu had the right to give her opinion, and she is quite moderate in her statements. She deserved more respect that was given.

yujuan said...

On the surface the haircut is quite high, but the thing is there seems to be no restriction on the months of bonuses to be paid out, it could be easily used to make up for the cut.
Transparency in actual total pay is the crux of the matter, including allowances and the bonuses, the latter could be up to 8 to 12 months, negating whatever cuts suffered by Ministers for the short term, and bring the pay structure back to square one. In time to come, mana change?

michael13 said...

Cut deep or shallow. The decision is made. Let's move on.

Gerald Ee's review committee failed to address one BIG problem - how to find a good enough number of political leaders who possess 'BONDING POWER' with the people? So the problem of 'DISCONNECT' can be resolved without using too much 'monetary power'. Countries like Germany, Norway and New Zealand have that kind of formula - they play FAIR! As a result, they trust each other.

Anonymous said...

The figure (37% cut) is calculated based on the exceptional year 2010, for that year, our ministers received a whopping 34.5 months (consist of 18.5 months performance, GDP and other bonuses on top of the fixed pay of 16 months).

Our ministers are actually enjoying a monthly salary increase of 23.8%!

This is because in 2010, our ministers received a total of 34.5 months but only 20 months in 2011.

e.g. for ministers with grade MR2:

2010 monthly salary: $62,194 ($2,145,700 divided by 34.5 )

2011 monthly salary: $77,000 ($1,540,000 divided by 20)

77,000 / 62,194 = 123.8%

Anonymous said...

Q1: By pegging to the top earners’ pay, ministerial pay will rise and fall in tandem with the top earners’ pay for that year. Then how does the committee know that it will be a cut of 37%?

Q2 : If ministerial pay are pegged to the median of top 1,000 earners, then why there are a total of another 12 months variable pay for the ministers?

Anonymous said...

Mr Tan, I respectfully disagree with your thoughts.

So what if doctors, lawyers, etc earn much more? They don't have political power. Political power distinguishes the cabinet from the rest of society. Politics is never about money. To associate it with money is to debase political office. It takes a certain breed who see it as a calling to step forward to SERVE THE NATION. Not so fast to say, support them and move on!

As for Grace Fu, not excessive at all. It shows her true colours. Instead of attracting the best talents, politics now attract people motivated by money AND prestige. They want to have it all and without any public scrutiny? You can't have your cake and eat it too! You should be pushing them to declare their wealth if they wish to have political legitimacy and moral credibility to rule.

hyom said...

Whenever a person is offered a chance to switch jobs at a lower salary even though the new job may come with other perks, surely the lower pay will be a prime consideration. I really cannot see what is wrong with what Grace Fu said. In fact, if she said she is not bothered with a lower salary, I will question her sincerity.

cd-rom said...

I look at the education on levels of all the Ministers . Many attained First Class Honours in their degrees. However, for a few, it was not stated. Is it important for them to be in the top percentile in their university cohort? I understand that academic achievements are not 'everything'. But surely, it quite important too. For your views.

Anonymous said...

Grace Fu hinted that her previous job paid her more.

I disbelieve her.

Name me a company in Singapore that paid more than 34.5 months bonus?

Anonymous said...

‘Pay cut of 37%”

The ministers’ salary review committee report should compare the new ministers’ salaries with year 2009 salaries instead of year 2010 because year 2010 is exceptionally good year, our ministers received a whopping 34.5 months (16 months fixed pay + 9 months performance bonus + 8 months GDP bonus + 1.5 months annual variable bonus).

michael13 said...

My observation: More people show interest or get involved in POLITICS, less unnecessary political problems for that country and society. Have we reached the desired level of political awareness? Try to talk to many of our uncles and aunties in Food/Hawker centres, surprisingly, the answer is NO. In Hong Kong, many old uncles and aunties can outdo us in terms of political events or happenings that affect their well-beings and the society as a whole. Thanks to the open and free mass media which Hong Kong provides with. Singapore government is very short-sighted in this respect. No wonder, we have been struggling to hit that much needed PRODUCTIVITY increases for years. I hold PAP government fully responsible for the consequence.

Hope that with the FAIR adjusted salaries, the government can adjust the FAIR thinking accordingly. No more SHORT-CHANGE for the people.

Anonymous said...

“Ministerial pay pegged to the median income of top 1,000 Singaporean earners less 40 per cent”

Median of 1,000 is 500th i.e. ministerial pay pegged to the top 500th earner’s pay.

I don’t understand why our ministers’ performances are NOT based on the well-being of the majority 99.95% Singaporeans but the top 0.05% Singaporeans.

Anonymous said...

The media is controlled by them.. though they deny it and will take anyone to court.

In HKG, the TV & radio educates the electorate about many issues and consequences of certain policies with lots of viewpoints.

Here? they release more korean drama serials and cooking shows.. including talent exhibitions.

WE are all daft becos they have designed it to be so...

I love my country
I dislike the PAP
and they have overstayed their welcome

Anonymous said...

this topic has been visited for the longest time, just like low birthrate or taxi hiding before Midnight. Has anyone ask what the Minister has done to deserve such high salary? So far, the only busy minister is Khaw Boon Wan who moves from MOH to HDB. Since his taking over, the back log has cooled down while he has not address the real cost of HDB apartment yet. How about others? I got no clue other than ESM and Deputy Chairman of MAS short changing structure products investors. Or Mr Yacoob telling us last year flood only happens once in 50 years. I believed most work and initiatives are provided by the civil servants while the Minister takes the credit as long as he speaks well in parliament. If this is the job he does, does he deserve $150,000 a month? Once they try to teach the World how to pay Ministers' a good Salary, now they are teaching the World how they lost the confident of their people while continue to insist on slightly lesser high salary.

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