Leong Sze Hian: A question on Ministers’ remuneration

December 26, 2007 by admin
Filed under: Current Affairs, Leong Sze Hian

On 22 Dec 07, TODAY published a letter from Leong Sze Hian who questioned why the recent increase in Ministers’ pay was the highest in both percentage and quantum terms compared with other civil servants, and more importantly, whether the combined bonuses have actually resulted in Ministers getting more than the 77% of the benchmark.

A question on remuneration

Including bonus, is minister’s pay above the 77% of private sector benchmark?

Weekend • December 22, 2007

Letter from Leong Sze Hian

I refer to media reports on ministers and top civil servants getting the second of their three-phase pay rise, approved by Parliament in April.

They say that “Singapore ministers and top civil servants will start the New Year with a second round of pay increase, ranging from 4 per cent to 21 per cent. Under the revised salary package announced by the Public Service Division … , 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”.

Since the increase for civil servants range from 4 to 21 per cent, why is it that ministers who are already paid the most are also getting the highest pay increase in both percentage and quantum terms?

Minister in charge of the Civil Service Teo Chee Hean said that “actual pay would still be tied to performance”.

He added: “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.

“This change is good news for political, judicial and statutory appointment-holders, as well as the 230-strong elite Administrative service. 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 nine months performance bonus, on top of the GDP bonus, which can fall between three and eight months, depending on economic growth”.

I would like to ask, including the “average of nine months performance-based bonuses” and “GDP bonus which can fall between three and eight months”, what is the total average pay of ministers? If these are included, have they reached or exceeded the 77 per cent of the private sector benchmark, to which their pay is pegged?

Copyright MediaCorp Press Ltd. All rights reserved.

Leong Sze Hian’s letter received a response from Public Service Division:

Public sector’s benchmark pay includes all bonuses

Wednesday • December 26, 2007

Letter from Goh Soon Poh
Deputy Secretary (Policy)
Public Service Division
Prime Minister’s Office

I REFER to “A question on remuneration” by Mr Leong Sze Hian (Weekend Today, Dec 22-23).

Mr Leong asked why ministers received a higher percentage wage increase compared to those in the lower grades.

Salaries in the Public Service are pegged to private sector benchmarks. Adjustments will vary depending on how the salaries compare with their private sector benchmarks at that point in time. As the gap between current salaries and the benchmark was larger at the minister’s grade, a larger adjustment was required to approach the benchmark.

Mr Leong also asked whether, with the bonuses, the pay for ministers would exceed 77 per cent of the benchmark.

The total annual pay for ministers includes all bonuses, such as the 13th-month payment, the average performance bonus and the GDP bonus. In the latest revision, we have also included the imputed value of the pension.

With all these components included, the salary for ministers at the MR4 grade will reach 77 per cent of the benchmark. The benchmark is itself two-thirds of the median of private sector salaries pegged against.

In his letter Mr Leong has erroneously attributed several quotes to the Minister in charge of the Civil Service, Mr Teo Chee Hean. For an accurate account of what Mr Teo said, readers can refer to reports in the media carried on Dec 13 and 14, or the Public Service Division website at www.psd.gov.sg.

Copyright MediaCorp Press Ltd. All rights reserved.