PAP-controlled media has done a good job at masking PAP ministers’ minimum 10 months’ bonuses in 2017.
When DPM Teo said there were “no changes to ministerial salary levels and structure“, he made it appear that ministers were underpaid, ie according to PAP’s pay formula. They were in fact grossly overpaid.
Singaporeans should take note that bonuses included in the revised ministerial pay formula consists of this buffet spread:
1. Fixed 13th month bonus of 1 month.
2. Annual variable component – up to 1.5 months, exceptional GDP growth could be higher.
3. Performance bonus – up to 6 months. Good performers typically get 3 months.
4. National bonus – up to 6 months.
Computation of National Bonus of 5.25 months is shown in the table below:
Data for real median income growth rate, real growth rate of lowest 20th percentile income and unemployment rate can be found @ Labour Market Advance Release 4Q 2017
Real GDP growth rate @ Singstat
Since it’s not possible for every minister to be not a good minister, an additional 3 months’ bonuses would increase bonuses to 8.25 months.
Including the 13th month bonus and AVC of 1 1/2 months, ministers received at least 10 months in bonuses in 2017.
The ministerial pay formula leaves lots of room for ministers to be paid additional months in bonuses. For example, some of them could have received 6 months’ Performance Bonus for their ‘exceptional performance’ in Parliament, perhaps in attacking opposition members?
The PAP government has to be more transparent by disclosing the quantum of bonuses paid to ministers.
Should ministers receive more than 10 months in bonuses while ordinary citizens do not enjoy a similar buffet spread, receiving only a fraction? Or, worse, could be even out of job?