Yah!!! Pay cut for whole civil service too?
SINGAPORE: Singapore Deputy Prime Minister Teo Chee Hean has moved a motion in Parliament to ask the House to adopt the proposals set out by the Committee to review political pay, and stressed the importance of having an open and transparent process to determine political salaries.
But what is also critical he said, is to have a system that will bring in a steady stream of committed and able people to serve the country.
Not since 2007, did the House see the issue of political pay, described as "complex and emotive" by the Deputy Prime Minister, debated so extensively.
From the onset, Mr Teo sought to demystify exactly who are the top 1,000 earners in the private sector which ministerial salaries are to be pegged to.
Data from the Inland Revenue Authority of Singapore (IRAS) show that the 1,000 Singaporeans come from leadership or senior positions in a wide range of business and professions.
474 of them hold senior management positions from sectors such as wholesale, transport, healthcare and hospitality. 383 come from the financial industry, while professionals like lawyers, accountants, doctors and engineers account for the remaining 143.
Mr Teo said: "We are not saying that only people who are among the top 1,000 earners would meet all these criteria, or that we will only draw from this pool. Indeed, many top earners may have the competencies but not the sense of public mission."
He said what the pool reflects is the quality and ability of people that Singapore seeks to bring in as ministers. That is why pegging political pay to a multiple of the Singaporean median income or to the lowest 20th percentile has its drawback.
He added: "I do appreciate that many may still feel that S$1.1 million is a very high figure. But I hope you will also see it from the point of view of a person possessing these qualities and the passion to serve the country.
"While he may be prepared to enter politics and serve the people whole-heartedly, each person faces different personal circumstances and considerations at the age of 35 or 40, when he has to decide what to do with the prime years of his life," he added.
Mr Teo stressed that if the salary discount was too deep, the talent pool would be drastically reduced.
As for pegging ministerial pay to leaders in other countries, he stressed that Singapore adheres to a clean wage system, so Singaporeans know exactly what a minister earns.
Mr Teo said: "This is an open and transparent system, but it also has a serious downside. Whenever comparisons are made, they are usually based only on cash income. This makes the salaries of the leaders in other countries look a lot smaller than what they actually are, as it excludes the cost of the benefits and perks that their leaders enjoy, some of which are not even known or measurable."
On the need for a performance bonus on top of the National Bonus, He explained that the National Bonus reflects national outcomes, which the cabinet and political office holders are collectively responsible for, while the individual performance bonus, reflects the Prime Minister's assessment of each team member.
He said: "The individual performance bonus reflects the Prime Minister's assessment of how each member of his team has contributed in that team member's specific area of direct responsibilities, but also how that team member has contributed to achieving the overall national goals.
"This reflects the way that the team works. This structure of a National Bonus reflects the collective responsibility for outcomes, while the individual performance bonus reflects the PM's assessment of the contributions of the individuals in his team."
Mr Teo added the government also agrees with the Committee's proposal to remove pensions as "this brings our politicians in line with the current practice where CPF is the basic retirement scheme for Singaporeans."
The proposed pay range for ministers can range from S$46,750 a month in basic pay for an entry level minister, up to S$110,000 a month for Prime Minister Lee Hsien Loong.
Including variables, Mr Lee's proposed total annual pay will be S$2.2 million.
This will rank Mr Lee's pay as the 382nd Singaporean income earner. Previously, Mr Lee's 2010 salary point of S$3.1 million is roughly equivalent to the pay of the 175th Singaporean income earner. Mr Lee though, has been donating his salary increases for the last five years from 2007, to charity.
Mr Teo added that the Prime Minister does not draw an individual performance bonus. Instead, the Prime Minister's entire bonus component will be based on the National Bonus.
The Prime Minister also has the discretion to appoint a minister at an even lower grade such as, Acting Minister or a Senior Minister of State.
"By so doing, the Prime Minister can test and assess a newly appointed Minister before deciding whether to give him heavier responsibilities, and place him on a higher Ministerial salary or grade. This will help address concerns that new Ministers who were drawing lower salaries in their previous jobs will see huge salary gains by joining politics," said Mr Teo.
Mr Teo has also asked the Public Service Division to study how the relevant principles may be applied to the civil service.
However, he added that the government agrees with the committee that "the element of significant discount or sacrifice expected of political appointment holders" should not be applied to civil servants, other statutory appointment holders and judicial appointment holders as they are professionals and hence should not be subject to the same degree of sacrifice as political appointment holders.
Singapore President Tony Tan Keng Yam, Speaker Michael Palmer and Deputy Speakers Seah Kian Peng and Charles Chong, as well as former President S R Nathan, former Speaker Abdullah Tarmugi and former Deputy Speakers, Matthias Yao and Indranee Rajah have all agreed to adopt the new salaries.
Ultimately, Mr Teo said there is no perfectly right answer to this complex issue, and it requires a judgement call. To ensure that the salary benchmark is competitive and responds to market conditions, it will be updated every five years.
-CNA/ac
