Singapore Ministers Face Steep Pay Cuts

Lee Hsien Loong

1/4/2012

(RTTNews) – Ministers and other lawmakers in Singapore face massive pay cuts in line with recommendations made by a committee established last year to review political salaries in wake of public anger over their high salaries.

As per the recommendations of the government-appointed Committee to Review Ministerial Salaries, the prime minister’s annual salary is to be slashed by 36% and the president’s by 51%. As well, the annual salaries of new ministers would be slashed by 31% to S$1.1 million from S$1.58 million, and the yearly wages of other elected lawmakers by 3% to S$192,500.

Despite the 36% cut, Prime Minister Lee Hsien Loong would be paid S$2.2 million ($1.7m) annually, which would still make him one of the highest paid political leaders in the world. President Tony Tan may see his annual salary reduced to S$1.5 million if the 51% cut is enforced.

In comparison, US President Barack Obama receives US$400,000 a year, while New Zealand Prime Minister John Key earns about US$310,000 a year and Australian Prime Minister Julia Gillard is to get about A$480,000 (US$498,200) annually under proposals unveiled recently.

The report by the Committee to Review Ministerial Salaries stated that the recommendations were based on “a salary formula that features fixed and variable pay components which are linked to individual performance and national outcomes.”

The Committee was set up by Prime Minister Loong after his ruling People’s Action Party (PAP) saw the largest ever drop in its share of votes in last year’s parliamentary elections. The PAP has ruled Singapore since independence in 1965.

Prime Minister Lee said his government intends to accept and implement the committee’s recommendations, which will be debated in the country’s parliament later this month. The PAP believes that public anger over the wages issue had played an important role in eroding its support base in the last elections.

Singapore has had a policy of paying high salaries to government members and civil servants for attracting top talent to the public sector. The high wages paid to government officials, in turn, have helped in curbing corruption to a large extent in the city state.