~by: Leong Sze Hian~

I refer to the report of the Ministerial pay review committee (Review Committee’s full report HERE).

Whose pay grew more?

Since the new benchmark is the median income of the top 1,000 earners who are Singapore citizens with a 40% discount, why is there no data as to what this figure was, on a yearly basis, over the last 10 years?

Without this data, how do we tell what was the annualised growth rate for the last 10 years?

Who had a higher annualised growth rate? – Ministers or the “top 1,000”?

Given that we took seven months to conduct the review, I am rather surprised that this is missing, as some may say isn’t this rather obvious to enable a thorough review?

Actual versus benchmark data?

Actually, citing the MR4 benchmark data for the last 10 years, may be somewhat meaningless, because I believe it does not include the bonuses paid, and thus not the actual total Ministerial pay received.

What we need to know is the actual average Ministerial pay versus the new “top 1,000” benchmark including the new National Bonus average, to determine another dimension into whose annualised growth rate was higher?

For example, if the “top 1,000”’s annualised growth rate was say higher than Ministerial pay, then the current reduction may be restored in just a few years’ time.

It may even be much higher after that, relative to the current formula.

Perhaps what we also need to know is the actual total pay of each Minister, without disclosing their names.

Even after this extensive review, Singaporeans may still don’t know exactly how much each Minister or band of Ministers were paid.

Easy bonus targets?

With regard to the National Bonus Matrix, achieving a Real Median/Lowest 20th Percentile Income Growth Rate for Singapore Citizens of just 0.5 per cent, will qualify for a 50 per cent Payout level.

This may arguably be one of the lowest targets that I have seen, to get a bonus.

Since the unemployment rate of Singaporeans is now at 3 per cent, by giving the maximum 200 per cent Payout level on just 3.5 per cent or lower, may arguably be the easiest target to get a maximum bonus.

With GDP growth expected to slow to one to three per cent next year, and which may be sluggish for the next two years, will the new formula result in a higher bonus, since no GDP bonus would be paid for GDP growth of 2 per cent or less under the current formula?

Also, since the unemployment rate for Singaporeans was only available recently this year, as in the past it was always lumped together with permanent residents (PRs) under the resident unemployment rate, was the committee privy to the past years’ Singaporean rate which Singaporeans still do not have access to now?

Pension to CPF?

With the change from pension to CPF, has the additional employer’s CPF contribution, tax deduction on the employee’s CPF contribution and accrued interest, been accounted for in the inputed pension pay reduction under the new formula?

Deterring real talents?

What the new formula may fail to address, may be the fundamental issues that we may be attracting some people with the wrong motivation, such as those that may quit if they suffer their first loss in a general election.

Or the high pay may deter talented, successful, wealthy and high income Singaporeans from serving, as long as their relatives, friends and the general public may chide them as being in it more for the money.

The respect for and pride of public service which were arguably universally accepted in the past may have been diminished by the high Ministerial pay.

So, are we paying so much that we may be deterring some real talents from serving our nation?

By the way, how many of those who became Ministers earned more than the “top 1,000” benchmark, before they became Ministers?


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128 Responses to “Ministerial salary review – what’s missing?”

  1. Life and universe truths here 6 January 2012

    en.wikipedia.org/wiki/Buddhism

    Go verify before believing

    Must know and realize what is our 8th consciousness(original nature of mind which is Buddha nature,阿赖耶识,也称藏识 或者 如来藏). Zen is about finding and realizing Buddha nature the 8th consciousness and perfection of 8consciousness(eyes, ears, nose, tongue, body, 6th sense[意识] which is differentiating ability mind, 7th sense[意根)which is our attachment and 6th sense is based on 7th sense which is the root differentiation sense,

    No 9th consciousness。subconscious known as 7th and 8th consciousness combined. Subconscious is general term, 7 and 8th conscious can be very complex and detailed and how it is linked to our 6 senses is very vast and deep knowledge.

    Go verify and practice before believing. Eight consciousness are more complex and complicated and complex than psychology and Psychiatric studies.

    Yogacara and zen are very detailed and complex Buddhism studies, it is complete practice for life. They involve physics and technology and mind completeness

    Reply
  2. Life and universe truths here 6 January 2012

    Must know above so that we dont keep on reincarnating lives after life. Pm, sm, mm, president and ministers and mp and civil servants also not spared

    Ahmitaba and guan yin pu sha

    Reply
  3. son of singapore 6 January 2012

    Even if the Terms of reference set by the PM does not mention the fact that the world has many nations and each one is governed by people. These officeholders obviously are paid. The natural thing for the Review Committee to do is to question the Terms of Reference which will cause the investigation to be incomplete and dishonest.

    My fellow citizens, we are barking up the wrong tree to be let into debating the quantum of this and that and percentages of this and that. The fact is that the whole review exercise is based on irrelevancies, if the relevant facts about how other countries pay their ministers is covered up and ignored. The true colors of this Government is clearly shown by the way it lies and cheats in order to get at the money.

    Reply
  4. blacktryst 6 January 2012

    You got to give credit where it is due now that the Pay review was conducted and this revision does seem more in line. But yes the commisssion did ignore comparing Ministerial pay with other countries public sectors. Also, the 35% pay variable that is tied to work performance and not GDP growth is a good step but will it be enforced?
    More importantly, who is to enforce or monitor that performance for Ministers? Thirdly, Performance reviews are even in Public sector is confidential, so who can truly say who did well or did not do well? The only way therefore is for public accountability and for the citizens to be as informed about their own ministers and what they have did in their jobs.

    Reply
  5. Chris Lim 6 January 2012

    A politically acceptable solution is to peg politician’s salary heavily to the lower income group by a multiple whilst at the same time capped to the higher income group with some discount, to signify the value and ethos of public service.

    The variation in pay structure should be wide enough for the politician to share the plight when things are not going well and the fruits when things are better.

    The cap is a safeguard against a formula going wrong which the review committee failed to incorporate except to call for another review in 5 long years!

    Reply
  6. iron man 6 January 2012

    it is so hard to be a minister. first, you need to learn to articulate well in public to not be misunderstood by the whole nation, you have to take responsibility for your ministry’s failing(s), your entire family will come under scrutiny and now that the pay is reduced, your standard of living will drop. GASPS!

    Reply
  7. Name (required) 6 January 2012

    sidewinder This is a perceptive commentary. The TOR appears to support the view that this all a PR exercise to have a ‘Committee’ take the responsibility for the unjustifable and really shameful gouging by the government.
    Now they can say, someone else said it not them.
    The resolution to this issue to get rid of such self-serving leaders and replace them with true blue blooded Singaporeans.

    Reply
  8. sidewidner 6 January 2012

    This is a perceptive commentary. The TOR appears to support the view that this all a PR exercise to have a ‘Committee’ take the responsibility for the unjustifable and really shameful gouging by the government.
    Now they can say, someone else said it not them.
    The resolution to this issue to get rid of such self-serving leaders and replace them with true blue blooded Singaporeans.

    Reply
  9. iron man6 January 2012
    it is so hard to be a minister. first, you need to learn to articulate well in public to not be misunderstood by the whole nation, you have to take responsibility for your ministry’s failing(s), your entire family will come under scrutiny and now that the pay is reduced, your standard of living will drop. GASPS!

    —-
    It is not easy if think one thing, say another thing, and do another thing. It is all about conscience

    Reply
  10. It'shoon 6 January 2012

    We need people who are willing and can perform. Reward system plays an important role to ensure we pay for performance. The proposed structure does not support this. If I am so comfortable with my base and the variable incentive given be achieved easily, it defeats the objective of paying for performance.

    Reply
  11. Who gave the Orders how much to cut? 7 January 2012

    I could not understand who gave the orders how much to cut.

    Is G pap?

    Reply
  12. Just a thought on the flaw in the benchmarking. If it is 60% of the 500th highest earner and the PM has 2*multiple of the benchmark, does that not mean the PM (and some of the senior ministers) would be in the top 500 earners and hence impact the benchmark. A bit of a circular arguement!

    Reply
  13. token reductions in salaries with no real impact on citizens

    Reply
  14. benchmarking minister pay

    service with the heart not the purse.

    1.politicians are public servants-why bench mark salary to private sector??

    a slimy scheme by Lky-cos he could not attract candidates to PAP-
    not good people to serve the country.Lky is very sly,he hoodwinked t
    whole nation to agree/think along his line of argument.

    no need to vote & pass the bill.
    40 years absolute power = abuse of power.

    2.why not bench mark to top civil servants?? and adjusted up accordingly
    like the chief of SAF,police commissioner,deans of university.

    how much was hsien loong,chee hean,hng khiang,george yeo
    earning as SAF generals??

    3.NO to performance bonuses etc.

    PM running a nation or business corporation??
    it is his job.no need to get incentive.

    if he perform well.he get reelected.that is his reward.

    4.politics is giving back to the nation.

    just like charity,giving back to society.
    do people like bill gates,george soros get paid for charity work??

    5.bench mark ministers salary to top civil servants.
    lets see how many puppies will resign.

    bcos they are mentally,spiritually,emotionally NOT ready to serve,
    if NOT for the million $$ salary.

    6.so what should be the PM salary??

    my 2 cents..

    thk q in anticipation..

    Reply
  15. son of singapore 12 January 2012

    It is no coincidence that many countries are sacking their rulers at the same time today. Even as I write, there is civil unrest in many nations in the Arab world agitating to get rid of their overlords. Some Arab nations have already gotten rid of their bloodsucking, aging dictators, namely Tunisia, Libya and Egypt. But many more are trying to do so. Why so many nations are doing this at almost the same time?

    It is the ease of communication brought about by the Internet. The uprisings in Egypt, which started it all, are famously coordinated by an Egyptian Google employee.The Internet bypassed the traditional media which as usual in these countries are heavily controlled.

    But the coincidence which strikes me deeply is the one happening right here in Singapore. For the first time, in the year 2011 we found that we have no need to read the Straits Times for the news or watch ChannelNewsAsia. Coincidentally or not, it was in 2011 that an opposition party, the WP captured 6 seats in Aljunied. Coincidences mount up. The citizenry became aware and troubled by officeholders paying themselves millions of dollars, to the extent that the Singapore PM earns 6 times what Obama earns. Even wet behind the ears PAP parliamentarians earn twice the Obama wage. The clamour on the Internet forced the PM to commission a ministerial salaries review panel.

    The PM was coincidentally also heard to promise the citizenry CHANGE, mimicking Obama I presume. Whether things will change is left to be seen but now half a year later nothing has changed. The mindbending salaries would be cut on the recommendation of the Review Committee but still remain mindblowing million dollar payouts. The favorite economic tool of importing shiploads of foreign workers and making one million of them citizens within 5 years seems set to continue. The secret political police, the ISD, is still in place. Not a single thing has been changed by the PAP.

    But looking at the coincidences created by the Internet, I anticipate that the CHANGE will be forced on the PAP, sooner or later. CHANGE is the Spirit of the Age of the Internet.

    Reply
  16. Christian Science Monitor made a point that is valid here:
    Dignity it said means worthiness, and “a government can’t move a country forward if leaders don’t value the people, don’t find them worthy.”
    The PAP government seems to value its people mainly as workers, consumers and entities used to increase the GDP.
    The decadelong boom has led to vast inequalities of income.Under this repressive government Citizens are made complicit.

    Reply
  17. What IS actually MBT Compensation? 14 January 2012

    What is actually a Minister total yearly renumeration?
    Example in 2010.
    1. Basic Pay $2.4m
    2. GDP bonus..12 mths..$2.4m GDP very strong from FT influx, etc.
    3. Performance bonus…12mths..$2.4m
    4. Pension…$1m?
    5. Allowances 13th month, MP….$400K
    TOTAL RENUMERATION 2010…$8.6M?????

    MPs pls ask in Parliament…Citizens want to know.

    Reply
  18. Detailed Window Dressing 14 January 2012

    Salary Window Dressing:
    1. Before candidancy….promoted, transferred to GLCs or TH as CEO or MD
    2. Gave big pay increase & bonuses
    3. Compared new Total renumeration with basic Ministerial Pay….looks like nice DISCOUNT.
    4. End of year as new “minister”…got GDP bonus, Performance bonus, Allowances 13th month, MP, etc.
    5. All in All a fantastic jump in TOTAL RENUMERATION as Minister?????

    Its a great run….doing public service….half truths as TRUTHS.
    Most talents somehow from GLCs, TH, Army, Civil Service…all GAHMEN….birds of feather flock together.

    Reply
  19. son of s 16 January 2012

    Remuneration is the standard bearer of the nature of the relationship between servant and master.If the servant grabs home a King’s ransom, then to all intents & purposes the servant is the real King and overlord. In our context, the servant is supposed to be the Government and the master, the citizenry. When the Government officeholder takes home millions as salary, can you tell me who is boss? Why should the boss please his servants, the citizenry? All the talk about serving the citizenry better in a changed governance is just eyewash in the face of the wash of millions of dollars for each officeholder.

    The knuckleduster is the real arbiter in our intercourse with the PAP. Do not be lulled by promise of a “new normal.” This phrase has been minted in the furnace of the Arab uprisings and is paradoxical when applied to the hegemony of the PAP. The Ruling Party is dealing in phantasmagoria to lull the population into political sleep, while it continues to rob the till.Which it has been doing for 17 years, when the idea of salary as proportional reward for GDP arose in the minds of the founding fathers of the PAP.

    From here it was a small step to go to the next big idea. Why not increase the population? Thus we have now to endure shiploads of foreign workers and new citizens.

    The extra-ordinary salaries of office holders is the curse of this Nation, for it leads to the destruction of our very identity as a nation.The astounding influx of foreigners change the demographics of this country irretrievably and like indigenous people everywhere we are reduced in every department of life.

    Reply
  20. Conscience missing… Compassion missing…

    Fairheadedness missing

    That’s all

    Reply
  21. John Kim 9 March 2012

    Did I read somewhere that some outfit (probably some white trash) was paid something like S$800,000/- to assist the panel in determining the salary "reductions"?

    Reply