Misperceptions (False)

Reality (True)

Salary
Ministers get bonuses on top of the reported salaries. Their total income is much higher than the reported figure.

The revised annual MR4 salary of $1.6 million includes all salary components ?monthly pay, mid and year end payments, allowances, performance bonuses and GDP bonus. There are no other payments.

Ministers do not experience variability or fluctuations in their salaries.

Ministers?wages vary according to the economic situation, like the rest of the civil service and the private sector.

Wages go down during an economic recession, e.g. Ministers had wage cuts during the economic downturns in 1999, 2001 and 2003.

A large part of a Minister’s salary is linked to his performance and how the economy is doing. With the revisions, close to half (47%) of this salary will be variable.

Ministers who hold concurrent appointments receive double salaries.

A Minister receives one pay, even if he holds two or more portfolios.

Medical Benefits
Ministers enjoy generous medical benefits. They and their dependents (parents, children, spouses) stay in A class wards and have their hospitalization expenses covered on top of their salaries

Ministers are on the basic Medisavecum- Subsidised Outpatient (MSO) Scheme, like the majority of civil servants:

- Hospitalisation: No hospitalisation benefits. Instead, Ministers receive 1% of salary (capped at $70 per month and at 17 months a year) paid into their Medisave. Ministers can use this to buy health insurance plans.

- Outpatient: Capped at $350 a year per Minister. Minister copays 15% of medical expenses at restructured hospitals. Where it is for his dependants (i.e. spouses, and children up to 18 years old), he co-pays 40%. However, this is all subject to the total annual expenditure cap of $350 per Minister. Any amount unused at the end of the year is put into the Minister’s Medisave account.

There are no extra benefits for them or their spouse/ children (below age 18 years). Their parents do not have medical benefits.

Perks
Ministers enjoy additional perks and privileges such as free cars, paid holidays, free/subsidised housing, free COEs, no ERP, waiver of maid levy, etc

Ministers do not receive perks. The salary is everything there is. They pay their own COEs, ERP, maid levies, and taxes.

The official car can only be used for official purposes, not for personal use.

Although the Prime Minister will continue to be accorded the use of an official car, this car benefit will be subject to tax.

Appraisal/Performance management
Ministers do not have KPIs or performance appraisal. They do not have to answer for their mistakes and under performers could cruise along.

Ministers are appraised by PM. A large part of their pay is linked to individual performance and how the economy is doing. With the revisions, close to half (47%) of this salary will be variable.

Job security
Ministers enjoy a relatively secure job, with none of the risks experienced by top earners in the private sector.

Ministers do not have guaranteed tenures. They serve at the pleasure of the PM, and like all MPs face general elections every 5 years.

Retirement Benefits
Ministers receive generous retirement benefits in the form of large pensions and medical coverage

Only those who have served at least 8 years as an office holder (e.g. Minister, Minister of State) qualify for a pension.

Since 1994, the pensionable salary component at each grade has been frozen. All subsequent salary increases, whether in the form of monthly adjustment or increase in annual components, are nonpensionable.

The pensions for Ministers are not calculated based on the total annual salary package each year. Bonuses, allowances and other annual salary components are not included in the calculation of the Minister's pension. Only the pensionable portion of the Minister's monthly salary is used as the basis for calculation, and the actual pension also depends on the length of pensionable service. With the revision, the percentage of the monthly salary that is pensionable has fallen to 40%. Thus, only 17% of the Minister’s annual salary is pensionable.

The maximum pension for a minister at the MR4 salary is 2/3 of the annual pensionable salary, or 11% of the annual salary. This amounts to $176,500 per annum. To qualify for that maximum pension, the minister has to serve for at least 18 years. This pension has remained unchanged even with the salary revision to $1.6 million, as the pensionable portion of the salary has been frozen since 1994.

In terms of post-retirement medical benefits, all office-holders, including Ministers who qualify for pensions will continue on the MSO scheme. They do not get free medical treatment after retirement.