This is a 40 per cent rise over the current pay

Janice Wong
April 9, 2007
AsiaOne

A government minister will draw $1.7 million or 77 per cent of the approved benchmarks by the end of this year, an increase of 40 per cent over the current salary of $1.2 million.

The increase, from this month, will see their pay go up to $1.6 million immediately.

By end of 2008, the salary will increase further to 88 per cent of the benchmark.

The benchmark, approved by Parliament in 1994 to ensure competitive salaries for a competent and honest government, is defined as two-thirds of the median salary among the top 8 earners in six professions.

Defence Minister Teo Chee Hean, who is also Minister-in-charge of the civil service, said today in Parliament: "Salaries at the MR4 Grade are currently at 55 per cent of the benchmark. Given the large gap, it is not realistic to close the gap fully in one go. Instead, we will close half of the current gap, that is, from 55per cent of the benchmark, to 77 per cent of the benchmark by the end of this year."

MR4 is the entry-level grade for ministers, and the grade for senior Permanent Secretaries.

The salary increase will be effected in two steps - one step now, and another step at the end of this year.

In the first step, the annual salaries for MR4 grades and above, will go up by an average of 25 per cent. The percentage increase will range from 33 per cent for MR4 officers to 14 per cent at the higher grades. The annual salary at MR4 will be increased from $1.2 million to $1.6 million. This will bring the MR4 salary to 73 per cent of the benchmark, close to the 77 per cent of benchmark aimed for the end of this year.

The revisions will be through adjustments to both monthly salaries and annual components. Monthly salaries for the MR4 grade and above will be increased by an average of 15 per cent. Monthly salaries for the MR4 grade will be increased by 22.5 per cent from $42,800 to $52,400. This percentage increase in monthly salary tapers off progressively for the higher grades.

By end of 2008, Mr Teo said the aim is to close half of the remaining gap, bringing salaries to 88 per cent of the benchmark by next year.

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