Singapore Review of ministers' salaries
1. The government is carrying out a review of ministers' salaries in 2023. The last review was carried out in 2017. The actual review is for the top political officer bearers, but the public generally refers to them as "ministers".

2. An earlier review in 2012 made a major adjustment. It reduced the salary of the prime minister and president. If I remembered correctly, the revised salaries were still pegged to the top salaries in the private sector. However, the revised salaries were still high by international standards.

3. At the salary review in 2023, it would be more acceptable to peg the salary of the prime minister to a certain multiple of the median income.

4. The median monthly income from work in Singapore was $4,680 in 2021, or $56,000 annually. These figures are inclusive of CPF contributions from employers.

5. I suggest that the salary of the prime minister be pegged at 15 times of the median income. This would work out of $840,000. The salary of the other ministers and of the president should be pegged at 80% or 90% of the prime minister's salary, depending on responsibility.

6. My suggested formula will produce a lower salary for the ministers  compared to what they earn now. However, they will still be the highest in the world.

7. The use of a formula that is pegged to median income will be simpler (compared to the top salaries). It would also more acceptable to the people.

8. Some people suggested that the salary should be pegged to the lower quartile but a higher multiple could be used. They said that it would focus the minister's attention to raising the salaries of the lower income. I think that this would be somewhat complicated, as the lower quarter would include part time and casual workers. It is better to deal with the inequality separately.

9. Over the past 10 years, the median income has actually risen 44%, or 3.7% per annum, from $3,249 in 2011. This benchmark is likely to reflect the general increase in wages, and will be more stable compared to a benchmark that is based on top salaries.

Tan Kin Lian

 

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