Cut in top govt pay
Pay of Singapore's top civil service officers and ministers will be cut as 'sharp' recession looms. -ST, AFP
Mon, Jan 19, 2009
The Straits Times, AFP
The top government salaries, which are linked to economic performance, will fall 12 per cent to 20 per cent in 2009 and 'may be subject to further adjustments given the volatility of the economy', Defence Minister Teo Chee Hean, who is also in charge of the civil service, said in Parliament on Monday.
Singapore is scheduled to unveil more measures on Thursday to help companies cope with the deepening global slump, which caused exports to contract in 2008 by the most in seven years. The National Wages Council last week advised employers to freeze or cut pay rather than fire workers.
Cabinet ministers in recession-hit Singapore will earn a salary of about US$1 million ($1.54 million) each this year - even after a 20 per cent pay cut.
Ministers can expect to take home about $1.54 million after the cuts, said Teo Chee Hean, the minister in charge of the civil service.
"As the salaries are linked to economic performance, the 2009 salaries may be subject to further adjustment given the volatility in the economy," Teo said in response to an MP's question.
Singapore in 2007 introduced a mechanism linking a significant proportion of senior civil servants' salaries to economic performance, which means that if the economy is doing well, pay will increase. The reverse occurs if growth stalls.
Trade-dependent Singapore became the first Asian economy to fall into recession last year, and Prime Minister Lee Hsien Loong said in remarks published Saturday that the government will further reduce its economic forecast for 2009 because the global situation has worsened.
There was no discussion in Monday's parliamentary session of Lee's salary but The Straits Times reported in November that he will earn $3.04 million after a 19 per cent cut due to salary components linked to economic growth.
Rare public fury erupted in 2007 when the government announced salary hikes for politicians and senior officials.
In response, Lee said the government would pay him the higher salary but he would donate the increase "to suitable good causes" for five years.
The White House said at the time that US President George W. Bush got paid US$400,000 per year for doing his job.
Singapore officials have said high salaries are necessary to recruit and retain talented individuals, and to prevent corruption.
source :- http://news.asiaone.com/print/News/AsiaOne+News/Singapore/Story/A1Story20090119-115705.html
Pay of Singapore's top civil service officers and ministers will be cut as 'sharp' recession looms. -ST, AFP
Mon, Jan 19, 2009
The Straits Times, AFP
The top government salaries, which are linked to economic performance, will fall 12 per cent to 20 per cent in 2009 and 'may be subject to further adjustments given the volatility of the economy', Defence Minister Teo Chee Hean, who is also in charge of the civil service, said in Parliament on Monday.
Singapore is scheduled to unveil more measures on Thursday to help companies cope with the deepening global slump, which caused exports to contract in 2008 by the most in seven years. The National Wages Council last week advised employers to freeze or cut pay rather than fire workers.
Cabinet ministers in recession-hit Singapore will earn a salary of about US$1 million ($1.54 million) each this year - even after a 20 per cent pay cut.
Ministers can expect to take home about $1.54 million after the cuts, said Teo Chee Hean, the minister in charge of the civil service.
"As the salaries are linked to economic performance, the 2009 salaries may be subject to further adjustment given the volatility in the economy," Teo said in response to an MP's question.
Singapore in 2007 introduced a mechanism linking a significant proportion of senior civil servants' salaries to economic performance, which means that if the economy is doing well, pay will increase. The reverse occurs if growth stalls.
Trade-dependent Singapore became the first Asian economy to fall into recession last year, and Prime Minister Lee Hsien Loong said in remarks published Saturday that the government will further reduce its economic forecast for 2009 because the global situation has worsened.
There was no discussion in Monday's parliamentary session of Lee's salary but The Straits Times reported in November that he will earn $3.04 million after a 19 per cent cut due to salary components linked to economic growth.
Rare public fury erupted in 2007 when the government announced salary hikes for politicians and senior officials.
In response, Lee said the government would pay him the higher salary but he would donate the increase "to suitable good causes" for five years.
The White House said at the time that US President George W. Bush got paid US$400,000 per year for doing his job.
Singapore officials have said high salaries are necessary to recruit and retain talented individuals, and to prevent corruption.
source :- http://news.asiaone.com/print/News/AsiaOne+News/Singapore/Story/A1Story20090119-115705.html
