Singapore’s ministers to receive less pay this year

Written by Our Correspondent

Singapore’s ministers will receive less pay this year with Singapore just emerging from one of its worse recessions in recent years. Even after the wage reduction, their salaries are still among the highest in the world.

The annual take home pay of top civil servants will fall by up to 22 per cent this year as they will not be getting the annual annual variable component (AVC) or GDP bonus.

Salary adjustments for administrative Officers, political, judicial and statutory appointment holders to benchmark their salaries to the private sector will also be put on hold, according to a statment from the Public Service Department.

The third phase of these adjustments, due in January this year, was deferred as a result of the recession. The first two adjustments were made in April 2007 and January 2008.

PSD said the annual salary for the ministerial grade (MR4) will fall by 22 per cent to $1.49 million, and that for the entry Superscale grade (SR9) will fall by 15 per cent to $338,100.

The annual salary of U.S. President Barack Obama is about US$400,000 or SG$562,000.

Singapore leaders have always claimed that they deserve to be pay high salaries because they are the “best talents” in the country and many have taken a “pay cut” to join the government.

However, it is unlikely that some of the ministers are able to earn their present salaries if they return to their original jobs before joining politics.

Minister of Environment Dr Yaacob Ibrahim was a professor before he stood in the elections. He probably earns between $10,000 -$15,000 a month at the most.

MM Lee Kuan Yew claimed that he would be able to earn more than what he is earning now in the private sector.

Lee is Singapore’s first Prime Minister from 1965 – 1990 after which he was “appointed” as the Senior Minister. He became the Minister Mentor in 2003 after his son Lee Hsien Loong took over the position of Prime Minister from his precedessor Goh Chok Tong.

The Prime Minister’s Office has one Minister Mentor, two Senior Ministers, two Deputy Prime Ministers and two Ministers without portfolios.

It is not known if the elder Lee who will be 87 years old next year, will continue to stand as a MP in the next general election due by 2011.

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41 Responses to “Singapore’s ministers to receive less pay this year”

  • citizenofSG:

    wow so big deal. Big pay cut but still more pay than ministers of other countries.
    We eat grass while they eat steak.
    I m so angry I want to give them the biggest stick.

  • Bird Talk:

    Thaksin Shinawatra is freely available. With such a high IQ few can match, he is still considered to be the smartest man in the region, and he is certainly second to none.

    Must be good if Temasek can offer him a job.

  • le resistance:

    a victory for TR and all the dissidents who comprain about minister pay

    KEEP RESISTING, VICTORY AT 2012 GE IS IN SIGHT

  • Anonymous:

    I think they should FRONT PAGE THIS ‘TRAGIC’ NEWS IN MSM and present it in BOLD PRINT A FEW DAYS before the next election. Better still if they stir up public sympathy for their sorrows of pay cut.

    Who knows, they might get 100% of the votes IN HEARTACHE SYMPATHY after that.?

  • Bullshit again, just before the election, ’some’ reduction and freeze, then after election, your guess is as good as mine.

    Only idiots will believe this crap, haven’t Sinkaporeans been through all this, elections after elections?

  • David:

    They are simply delaying their pay increment due to public outcry of their obscene pay. Thus I do not think they are getting lesser pay since there is no pay cut like the private employees. I can’t imagine the ministers are still brooding over the next pay increments which should be totally scrapped because Singaporeans do not approve it.

  • fair and square:

    well,if it is done in the spirit of pure sincerity and honesty,it should be appreciated…all we want is unity in our common singaporean destiny.
    my only concern is that such savings should not be cursory and
    mere temporary with more aggressive and heftier increase after
    elections.
    also,such big savings should be “pumped” into the ailing domestic economy by possibly packaging it into meaningful
    activities like subsidies and helping the lower income citizens…not diverted for some other useless measures.
    all said,it would be the good of both gahmen and citizens to allow for more opposite views in Parliamnent by way of a more
    eqtuitable practice in GENERAL ELECTION;one valid example would be to make WAY for more SINGLE WARD CONTESTANTS.
    At least,for once i don’t have to lodge any complaint for more of such actions would be in good compliance!!!

  • wat?:

    you’d be surprised how many SGeans will buy it.

  • Time for Change:

    Sinkapore on Thu, 26th Nov 2009 10:02 pm

    You’re absolutely right. I, too, almost forgot. Elections are expected early next year. They are already making all the ‘right’ noises. GDP next year is expected as high as 5%. Many news reports on more jobs being available. MIW willing to listen to the people and curb the flood of foreigners here and now this!

    Next year we can expect more goodies.

    After the elections, GST will increase to more than 12%, ministers will get another 60% increase in salary, 2 million more foreigners will be brought in and prices of utilities and fares for public transport will be increased. They will probably take back 10 times over what they gave you.

    Sinkapore, thanks for the reminder. We have been through this many times before.

    Time for Change.

  • xueni:

    Is this the same one announced end of last year (2008)after the financial tsunami? I remember at the end of last year, at the height of the financial meltdown, the gov is quick to announce that the pay this year (2009) will be cut by about 20%.

    If so, repeating it just before the year 2009 ended is recycling old news to make it sound as though there is another round of pay cut???

  • Mee Siam Mai Hum:

    Akan Datang: Golden Periods after election….for sure

  • from HK:

    Getting a minster post enable them to hold multi directorships . So what so great deal having lesser peanut due to pay cut.

    I am supprise they only cut their pay now , Private sectors already have multiple times of pay cut since 2008. this only means Election is coming.

  • knnbccb:

    Without a doubt, elections are coming. Announce their ’sacrifice’ to everyone with clangs and trumpets, hoping to generate good PR.

    Next step: lots of cash thrown Singaporeans’ way during the upcoming Budget.

    But remember, politics is just like business. When there’s a monopoly, you’ll get screwed over eventually, whether you like it or not.

    P.S: Private sector has indeed got it much worse: layoffs, wage freeze, cancelled bonuses, cancelled perks, hire freeze, contracts not renewed, do two jobs for the price of one etc. On the other hand, it’s business as usual for the civil servants.

  • btan:

    If Singaporeans continue to be easily fooled by their wayang tricks and poisoned sugar, then we deserve to be extinct in a decade’s time.

  • btan said: If Singaporeans continue to be easily fooled by their wayang tricks and poisoned sugar, then we deserve to be extinct in a decade’s time.

    You will be surprised how many times Sinkaporeans are willing to take it up their arse, every 4 years. :(

  • fair and square:

    @Sinkapore,btan
    that’s why we still need to have a decent number of opposition
    members of parlaiment to ensure that our voices are better heard abd represented;not merely stopping in this platform.

    good responses like this one taken to reduce the out-of-whack
    ministerial and top civil service pay packages must be continually ensured for the overall good of singaporeans’
    livelihood and the way to do it is by having a credible
    alternative voice in parliament and that lies in our own
    hands…the oppositions must be the OPPOSITION and the people must choose wisely for their own destiny.
    honestly,sometimes i wonder if top echelon PAPies are wise
    enough to allow themselves the “luxury” of contrarian opionions
    so that the gahmen can then make wiser better,not neccessarily hasty,decisions for the good of society.

  • BarelyAlive:

    I think top civil servants should get a higher paycut.
    I think the lower civil servants salary should be increased.
    Hey, they face the wrath of the public over all those poorly thought out policies, so they should be compensated more right?
    All those immigration officers having to put up with public snide remarks about the influx of foreigners just because their department relax immigration policies.
    Those CPF staffs having to explain to the public over the pathetic payouts of CPF Life.
    Top Civil Servants implement, get high pay but the ground officers having to answer for them, I don’t think that’s quite right.
    Instead of having highly paid ministers, cut their pay! Use the funds for public spending to stimulate the economy. Or at least, the paycut in this article, be maintained. No pay increase for ministers for the next 5 years. What they are earning is more than enough to lead a comfortable lifestyle.

  • fpc:

    1 dollar is also a reduction.

    they need a big reduction.

  • Averaging maths:

    Since 2006 substantial 30% raise, 3.5 years have gone by, so what remains is only 1.5 years left.

    By averaging this present cut of 22% over the whole 5 year period i.e. 22% X 1.5 / 5, its only a -6.6% average over a 5 year period (2006-2012).
    So, the previous raise was 30% – 6.6% = 23.4% actual raise higher prior to 2006.

    BUT then again, from 2006 upfront interest earned for 3.5 years plus additional huge performance bonus, all inclusive will certainly more than sufficient to offset this 22% cut.

  • Secret Squirel:

    They are still getting 1.25 months bonuses, instead of 2 months of last year. So this crap is written by the ST in such a way that they hope will appease the public. Can you all see the spinning in motion again?

    By the way, that is only for public consumption.

    As far as the very top people are concerned, there is a behind the scene payment. This is only decided by the PM. And it is highly confidential. There is a secret fund for this.

  • Schon de Marco:

    If I were these elites, I won’t mind. I am more than contented having the chance to serve the people and my cpf got so many Zeroes already. Feel so good.

  • fair and square:

    @BarelyAlive
    you are right but i say,even top private sector’s executives
    are overpaid and “underworked”?
    those who really work hard(80 pct of total work)GET
    less pay(20 pct)? as always.
    Hollywood types got paid so heftily FIRST for doing “what they enjoy/love doing…passion,bla,bla,bla,and Wallstreet quickly
    followed and the rest is history…GREED IS GOOD?!
    This world poor has been made poorer by globalisation and this
    “greed” thing need to be corrected or the poor would mostly end
    up even more “impoverished”!
    ‘Greed’(hoarding and hoarding by rewarding themselves grossly)of CEOs and major shareholders is imho,bad for the total economy,both nationally and internationally…no question about it(and no great sounding excuses) as has been seen in Wallstreet and across the world to our very own Raffles Place.
    it is like an “economic” cancer and worse,a moral degradation a retardation to human development.

  • Ang Pow on offer - you want too?:

    I have got lots of Ang Pow on offer for the desperate needy, any of those “underpaid” elites want some? Just Q up at my door.

    If you want it, here it is, come and get it but you better hurry up cause it is not going to last….

  • Robert Mugabe of Singapore:

    MIW Ministers can win an Oscar for their play-acting.

    5 p/c pay cut before the GE.

    Self-increase their own salaries by 60 p/c AFTER the GE.

    History will repeat itself.

    http://www.nytimes.com/2007/04/09/world/asia/09iht-sing.3.5200498.html

    http://www.yeocheowtong.com/Salaries.html

  • XIIIblackcat:

    In what ways have our dear ministers improve the economy? The initial tumble at the start of the economy is caused by Wall Street and the subsequent climb is also caused by Wall Street. We are just a small little red boat riding the waves.

  • Rainnix:

    Will there be exceptions like those 2 in CDC, who got 8-month bonuses? If public sector don’t declare their salaries, how will we know what is being paid out behind our backs? Trust again?

    Voters ‘trust’ them the last time by voting them in and they help themselves with obscene salaries. Now we should all be careful to who we vote in the next election, instead of being complacent again.

  • L:

    I am willing to be a minister even if you were to cut my salary by 80%. I will still get more than 200K per year excluding bonuses.

    Cut the bullshit PAP. We have grown wiser and apparent you haven’t.

    Also stop saying that you are having difficulty finding good people to join you. The truth is more good and credible people are avoiding you like plague!

  • “Ministers to receive less pay this year?”

    Just see how the ST bugs spin!

    The fact is Ministers’ and top civil servants’ pays remains unchanged, which should be otherwise; they should be cut down by at least another 80 percent.

    The fact is that Ministers and civil servants are still getting at least 1.25 months bonus, despite global and national economic melt down, and despite the people are losing jobs and getting severe pay cuts.

    The fact is that Ministers PM Lee still has the power to decide who to award extra pay/perks at his whims and fancies.

    So, the Title should be:

    “Despite Severe Economic Downturn, Ministers are still getting bonuses, though a little less!”

  • Get Real:

    This country in a mess and people still looking for bonus?

    It is ridiculous!

  • Elementary My Dear Watson:

    For the information of everyone – our ministers’ pay already has a bonus component built into computing their annual salary. And now, on top of this, they are going to get that sepcial one-off payment? One-off the last time, one-off now, one-off again the next time – it’s getting to be a regular affair it seems. So where is the effect of concept of “one-off”? It seems like a regular thing to me.

  • Kan_Cheong spider:

    22% pay cut sounds alot… but hor, IMO, the type of replies coming from crisis issues show that some of these ministars are not even worth 10ct. Absolutely Jiak Liao Bee.

  • blackfeline:

    so one less trip to Europe? We want drastic pay CUT on ALL the ministers including the PM, SM and MM!

  • For those who think that the millisters are actually receiving a pay cut, dream on.

    What ST have been trying to put forward is that Millisters and TOP Civil Servants will NOT be receiving their:

    1. 6/8 months bonus which was planned but only 1.25 monthts instead.

    2. Their pay rise of another 20% due to the GC coming soon, so basically its KIVied, NOT cancelled.

    Overall, they will suffer NO pay cut, merely a wage freeze and lesser bonus. Their salary will remain STATUS QUO.

    So Sinkaporeans idiots, think hard and long before jumping to vote for the PaPies again.

    Rest assured that GST and Millister’s pay increase WILL RESUME if the PaPies enjoy an overwhelming victory. Mark my words!

  • We are all missing one commentator here in TR...:

    xISD Tay… Where have you gone to? Hope you’re not in ISD dtention under the ISA??? Or you may have got tired???

    Antway… you’re most welcome back… even as a Comeback-kid!!! Heeheehee… Haahaahaa!!!

  • You can OsO see MIW at...:

    Funeral Wakes an funerals. I guess the old guy was then too young to have realised this and that WHITE is OsO a MOURNING COLOUR!!! After watching the Lim Hock Siew video I fellt such deep intensity and conviction that I MUSt write about this COLOUR OF WHITE!!!…

    And… By The Way… didn’t people use to say that ghosts go around in white too!!!… The irony of life is that the jokes always end up ON THE “joker” instead!!!

  • Our future generation is going to curse us if we allow the present state of politics to persist. How can Singaporeans allow a bunch of senior civil servants and parliamentarisns to pay themselves such obscene salaries. While there are hard working citizens still earning a few hundred dollars a month or $4 an hour rates we have for example a president who earns a pension, multi-million dollars salary, bonuses and other cushy perks doing f***-all work. If we can save on this one salary, we can increase welfare by a mile. Imagine a collective saving of all the ministers, mayors ( do what ah ?) MP’s and superscale government officers salaries if they earn reasonably relative to the average income of ordinary citizens we can easily provide so much more for the common folks. Don’t you all agree – and don’t anyone give me the crap of less pay more corruption arguments – it is not peanut salaries I am talking about.

  • Anonymous:

    @ Steven Phang on Sat, 28th Nov 2009 3:22 am

    Steven, I agree with you absolutely1!.

    How many people question THE INHERENT FALSE LOGIC of this crap about higher pay discourage corruption. CORRUPTION HAS ALL SAHDES OF RESPECTFUL DECEPTIONS.

    We see that on Wall Street and London, big pay encourage big risks taking for bigger pay and bonuses and if failed too big ( AND TOO IMPORTANT???) to fail and bailed out by societies?

    It is a LOAD OF FU$KING CRAP.

    Now that Obama wants to forced pay cut and restraint on Wall Street, how many of those greedy dogs and cats would quit their jobs and go fishing even though they have through 2 decades of deceptions robbed enough from societies?

    I BET NOT ONE OF THOSE PREACHING HOLY SH$TS!!

    They are there FOR THE BIG MONEY FIRST AND FOREMOST, POWER AND STATUS AND FOR THE JOY OF THAT ROLLER-COASTER JOY OF RIDING THAT BUSINESS OR CAREER. Cut those peanut supply to the monkeys by half, they will still be there to collect their reduced Peking duck and sharks fin soups and warm the seats in glee of public charity box of no self-respect.

    THE NOTION OF PAY TO PERFORMANCE IS THE GREATEST HOAX AND THEFT OF THE CENTURY ECONOMIC HISTORY WILL REMEMBER.

    We, the small men and women, are paying now for the DECADES OF DECADENCE OF CONSUMPTION OF EXCESS OF BIG PAY, LIVING BEYOND THE MEANS AND EVEN GO INTO SPECULATIVE GAMBLING OF MORE AND NEVER ENOUGH MONEY TO SPEND NO MATTER HOW MUCH IS OBSCENTLY RECEIVED.

    It is we who do all the hard work!

    And guess what now, not enough to go round to fill all greeds. The world nearly crash this year and we all staring at starvation and revolution of democracies.

    HOW STUPID AND GREEDY OF MANKIND IS???? NO measure, I would say!!

  • See no evil, hear no evil:

    FOOL ME ONCE, SHAME ON YOU; FOOL ME TWICE, SHAME ON ME.
    UNFORTUNATELY IT WON’T BE THE LATTER.

  • See no evil, hear no evil:

    FOOL ME ONCE, SHAME ON YOU; FOOL ME TWICE, SHAME ON ME.
    IT WON’T BE THE LATTER.

  • MeeSiam:

    Even when the salary of the government is to go down by 50%, our minister’s salary, let alone our PM salary, is still higher than US President Obama. With this ridiculous high salary, our ministers still let Mas Selamat escape, Bukit Timah to flood, etc, from happening.

  • streetsmart73:

    hi there

    1. aiyoh! put the “cut” to buy the $2.00 brick loh!
    2. out one pocket in another!
    3. all-in-one-family.

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