Wage cuts between 36 and 53% recommended for political
appointments
SINGAPORE: The Review Committee, appointed by the
Prime Minister to look at Ministerial salaries, has recommended
cuts of between 36 and 53 per cent.
This was disclosed by Committee Chairman, Gerard Ee, on Wednesday
at a news conference.
The Committee was appointed after the general election in May last
year, and had submitted its report to the Prime Minister on
December 30.
Prime Minister Lee Hsien Loong had announced the review at the
swearing-in ceremony of the new cabinet in May last year.
Among the recommendations made are the Prime Minister's annual
salary to be cut by 36 per cent, to S$2.2 million.
The annual salary of ministers will be cut by 37 per cent, to S$1.1
million.
The President's annual salary is reduced by 51 per cent, to S$1.54
million.
The Speaker of Parliament will see the biggest percentage cut of 53
per cent, to S$550,000.
Previously, salaries were pegged to the median income of the top 48
earners in Singapore, with a one-third discount.
Now, they will be pegged to the median income of the top 1,000
earners who are Singapore citizens.
A 40 per cent discount will then be applied.
Based on 2010 figures, the proposed salary for entry-level
ministers works out to S$1.1 million.
The committee also recommended changes to bonus payments, pensions
and benefits under the new pay structure.
The committee has recommended that the GDP bonus be removed, and
replaced by a National Bonus.
The National Bonus comprises four elements - including the
unemployment rate, real median income growth, GDP growth and the
real income growth of the bottom 20 per cent of wage earners.
Chairman Gerard Ee said the salary must be a "clean wage" with no
hidden perks.
He said: "Our recommendations, while it is a severe cut, 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 is some sacrifice to be made.
"The 1,000, basically is, first take note that it's based on
Singaporeans only, and eliminate the PRs and everybody.
"So we say if the talent pool from which we want to tap, if we were
to hunt for them, we believe if they were to be functioning outside
of politics, that's where we're going to locate them."
The new salary will be backdated to 21 May last year, when the new
government took office.
MPs will debate the report when Parliament sits for a second
session 16 January.
Parliament's first sitting for this year will be on 9 January. It's
expected to focus on several questions tabled on the recent
flooding and the spate of MRT disruptions.
- CNA/ck
