11/27/2006

cabinet salary increase?

Cabinet pay May soon rise During May election, hikes in 5-7% GST and cabinet ministers’ pay were widely speculated. Now the 2nd part may also come true. By Seah Chiang Nee. Nov 26, 2006 By far the highest in the world, Singapore cabinet ministers’ salaries are likely to head for another increase soon.... Currently, ministers are paid basic annual salaries (plus performance bonuses) and, at age 55, they are entitled to collect both a salary and full pension. The President's basic salary US$1,500,000 (S$2,507,200) while the Prime Minister gets US$1,100,000 (S$1,958,000). Minister's Basic salary ranged from US$655,530 to US$819,124 (S$1,166,844 to S$1,458,040) a year. In comparison, the president of the United States, the most powerful nation in the world, earns US$400,000 and US$50,000 expenses, less than what a junior minister earns in Singapore. In UK, Prime Minister Tony Blair earns US$170,556 annually.... Littlespeck.com The rise in salary for the politicians is a good thing. We should not begruge them for their high salaries. They deserve it. Further, with the high cost of living in Singapore, we cannot afford to tempt them to become improper when their salaries cannot keep up with their Swiss standard of living. And when their salaries are comfortable enough, they too would not begrudge other Singaporeans from earning more and would not do any silly things to break other people's ricebowls. It is good for everyone. The only thing to be concerned about is to raise the salaries of those civil servants at the lower levels, ie. those earning less than $5000 pm. By keeping on a percentage increase to the million dollar earners, the income gap will surely widen. It may be tough to maintain a Swiss standard of living. But it is tougher to maintain a hardlander's standard of living.

8 comments:

Anonymous said...

Your figures are qouted with an outdated exchange rate. US dollar is weaker than that.

redbean said...

point noted.

the moral of the story is still the same.

Anonymous said...

Redbean,
This is corruption of the highest form and at its worst.

Corruption that is been masqueraded by law legally, since gov knew Singaporean is coward and nothing they can do.

I fear for every Singaporean except the gahmen.
I believe the worst is still to come.

We lose Billions away, and yet doesn't do anything. What do you think they will do. Take advantage of chicken Singaporean la.

abao said...

Salary increase for Civil Servants is good. This encourages more people to work in Civil Service.

But when the Cabinet pay themselves out-of-proportion rates and still want an increase in Salary, is that okay?

Can we have an explaination on why minister's salary should be increased and how is the current salary formulated?

And can we assume that the 2% GST (or some say 40%)increase is meant to finance these increases in costs? Then how is the poor going to bebefit now that the money has gone to Salary increases?

redbean said...

actually salary increases in all sectors and for everyone is good. more money around and more happy faces.

but is it sustainable? just a few while ago we were telling the people that there are strong competition from India and China and we will lose all our jobs if we don't tighten our belts. now suddenly everyone is looking forward to increases.

another happy fairy tales in the making. and it will end up with they all live happily ever after.

blueheeler said...

whatever minsters' get paid, it is still peanuts...

redbean said...

quite true. to me, it is a big fortune. it all depends on our appetite and what we are used to.

welcome to the blog, blueheeler.

redbean said...

Could anyone believe that a family income of $2000 is barely enough to live and get by? On the other hand a maid could send their $300 income home and be fairly rich when she completes her 5 year stay in this paradise?

It was just 30 odd years ago when a fresh graduate with a 4 figure salary was very comfortable, and middle class. I mean only $1000. And a minister with $5000 monthly income is rich and could afford to buy detached houses.

Today, a fresh graduate earning $2000 or $2500, is not even over the hump. He could not even afford to buy a second hand car to impress his girlfriend. How much is a minister getting? $50,000 or $100,000?

And they are going to give the young graduate a perk in the coming pay rise exercise of $300 or $500 while the millionaires are going to be getting a $50,000 or $100,000 increase a month! And the excuse is that it be cannot helped if the income gap keeps widening. And the poor millionaires need to get their just increase or they will not work or be poached by MNCs with bigger pays.

And yes, Singaporeans will 'believe' or will just live with all these craps.