… to help cope with the fare hikes recently. With all the fare hikes, the ministers would definitely need a pay hike to help them cope with the ever rising cost of living in Singapore. After all, what price for an uncorrupted government?

Well, ok, jokes aside. Of course you know that I am kidding about the coping with the fare hikes. Moreover, I don’t think they really take cabs, and even if they do, the hike is really peanuts to them.

What this hike is really about, is that there was an agreement in April 2007 that the ministers’ and top civil servants’ pay will be revise to be on par with the top salaries in the private sector. This was done so as to attract and retain good people.

This means that the lowest ranked minister will take home about S$1.94 million next year, a meager increase from the current measly S$1.6 million paycheck that they are bringing home now.

This also means that the President will be bringing back S$3.87 million this year, up from the current S$3.1 million, the Prime Minister’s at S$3.76 million from the current S$3.09 million, ministers and senior permanent secretaries, at S$1.94 million from the current S$1.593 million, entry superscale grade Admin officers, at S$398,000 from the current $384,000 to and MPs, at S$225,000 from the current S$216,300.

On top of this, they will also be getting fatter bonus – after all, the economy is really doing very well now, and they should all give themselves a pat on the back. Really. I think this is better than having a corrupt government or losing good performers to the private sector. Right? =)

SINGAPORE’S ministers and top civil servants will start the New Year with a pay increase, ranging from 4 per cent to 21 per cent.

This is the second phase of an increase that was decided on in April.

Under the revised salary package announced by the Public Service Division (PSD) on Thursday, ministers at the starting grade will take home $1.94 million next year – an increase of 21 per cent over this year’s $1.6 million.

MPs and administrative officers – the elite of the civil service – will see their salaries going up by around 4 per cent or more.

The changes come after the first round of pay hikes in April, when the Government also announced that civil service salaries would be adjusted over time to keep pace with private sector benchmarks.

Minister-in-charge of the Civil Service Teo Chee Hean said on Thursday that the move was in keeping with April’s announcement.

‘Public sector salaries move up and down with the market. In this tight labour market, private sector salaries have moved up significantly, as the benchmark figures show. The service needs to follow promptly in order to attract and retain good people,’ said Mr Teo, who is also the Defence Minister.

But he noted that actual pay would still be tied to performance. This includes individual performance and how the economy does.

‘We are careful to link rewards closely to performance. We have increased the proportion of annual salary that is variable. At the senior levels as much as 50 per cent of the annual salary is now performance-based,’ he said.

With the pay revision, the annual salary for President SR Nathan will go up from $3.1 million this year to $3.87 million in 2008, the Prime Minister’s from $3.09 million to $3.76 million, ministers and senior permanent secretaries, from $1.593 million to $1.94 million, entry superscale grade Admin officers, from $384,000 to $398,000 and MPs, from $216,300 to $225,000 (see tables below).


Their pay increases will come in the form of a higher monthly salary and a fatter performance bonus.

For instance, ministers at the entry grade of MR4 will get an average of 9 months performance bonus, on top of the GDP bonus, which can fall between 3 and 8 months, depending on econommic growth.

In a statement, the PSD said that this round of changes would bring MR4 salaries to 77 per cent of the private sector benchmarks, to which it is pegged. The April revisions had brought it to 73 per cent of the benchmark.

The benchmark is set at two-thirds of the median pay of the top 8 earners in banking, law, engineering and accountancy, as well as employees of multinational corporations and local manufacturers.

This was $2.2 million as of April but has been revised to $2.7 million when calculating next year’s pay.

Article obtained from straitstimes.com on 13th December 2007

Reader's Comments

  1. zeezzen | December 13th, 2007 at 8:36 pm

    I don’t agree. Why should their pay be increased so much? It’s tax payers money! If the government really want to help, they should reduce the tax Singaporeans have to pay. This will really help a lot of Singaporeans. This is not the first time the government have been increasing pay of TOP ranking minsters and civil servants. Come on, I think their pay is HIGH enough already. Why low ranking civil servants don’t get pay increment? Why do they need 100,000 to 700,000 increase in their annual income? These money can be used to improve the life of so many lower ranking civil servants you know. If taking 500,000 it can be used to increase 250,000 civil servant’s pay by SGD200. $200 to the ministers are peanuts but I believe its a lot of money to the low ranking civil servants. And can you imagine how many ministers there are…. I’m sure anyone of us can do simple mathematics calculation on this.

    Complain so much also no use. This is Singapore. What can I do? Just wait and be squeezed dry by the government.

  2. zeezzen | December 13th, 2007 at 10:03 pm

    opps.. typo. should be 25,000 civil servant instead of 250,000.

  3. spyer | December 13th, 2007 at 10:29 pm

    These pay increases are to stop them from being corrupted. What??!! You mean that the ministers will turn into corrupted crooks when they do not have enough money in their pockets?

    Of course, they are talented, talented enough to delegate work to a bunch of advisers to think for them.

  4. Vandalin | December 14th, 2007 at 1:23 am

    My goodness, I can totally imagine how someone earning 7 digit pay will be totally beggered by the recent fare hikes in public transport that they don’t even use.

  5. Best Jokes For You! » Going up: Ministers’ pay… | December 14th, 2007 at 2:08 am

    […] Simply Jean created an interesting post today on Going up: Ministersâ payâ¦Here’s a short outlineWell, ok, jokes aside. Of course you know that I am kidding about the coping with the fare hikes. Moreover, I don’t think they really take cabs, and even if they do, the hike is really peanuts to them. What this hike is really about, … […]

  6. GeekyCoder | December 14th, 2007 at 9:59 am

    Can we bring this to Guinness World Records ? They sure to make Singapore proud by been the most expensive elites and ruling party in the world for just a tiny red dot !
    Needless to say, I just proud of them in anyway. God bless them.

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