4/06/2009

Highest paid politicians - the numbers are wrong!

Yes, the numbers quoted for the world's highest top 30 politicians are wrong, way off the mark. Too conservative. What were quoted in the article were only the basic 12 months' salary of the politicians. There is another element that forms part of the package. Oh actually there were two elements, another bonus payment that can go as high as 12 months of the monthly salary. Some have quoted a figure of 16 months. And there is also pension. To quote Hsien Loong during his answer to Steve Chia, a NCMP, this was what he said. 'Mr Speaker, Sir, it is an entire package. When we calculate the salary, we look into how much a person receives now, how much he receives in the CPF, and how much he can expect to save in pensions. And when a person retires, he has a choice of having a pension stream for the rest of his life or taking a commuted lump sum at the point of retirement. In fact, as a matter of fact, nearly everybody who retires prefers the commuted lump sum. Because you take a lump sum, you invest it, you do what you want. If it runs out, it runs out. There is no free lunch. If you do not have your CPF, you have the pension. If you have the pension, you have less CPF. So it all adds up to a finite amount. The Member's implicit question is: are the Ministers enriching themselves again? And the answer is, we are going on market terms and, if anything, we are paying below what the market is.' It is an entire package, ....it all adds up to a finite amount. So, when we said that a minister or Prime Minister is getting say $3m, he could possibly get $6m, plus or minus a little depending on his bonuses. Then on top of that, if he has reached 55 years of age and has served 8 years as a minister, he is entitled to another 2/3 of his basic salary. There is a formula and definition of the basic salary in the Parliamentary Pensions Act. So if a Prime Minister is getting $3.9m, he could be getting another $3.9m in bonuses and another 2/3 of an X salary. This could easily be another $2m. That will come to around $9.8m. This $9.8m is the entire package, excluding other perks. Thus, all the figures quoted are way off their marks. They should be multiplied by 2 or 2.67 times. Would these numbers drive the political leaders of the world, especially the rich western nations, insane? They must be kicking themselves for being so underpaid.

3 comments:

Anonymous said...

his market is what?? shouldn't it be the one where obama, merkle, hu jin tao etc is??
by any other countries reasoning, it it corruption that he is getting so much over people doing the same job.
but here in sinkapore strangely its ok.

Jaunty Jabber said...

Did Singapore education on moral study failed till such that people who succumb to outrageous greed and corruption could only be curbed by super high salary?

redbean said...

no lah, no like that lah. our moral compass bearing is still pointing right. the reasoning is only use to pian ah pek.