As a Performance & Reward professional and Singapore citizen, I found the government's decision to refresh its salary framework interesting. It commissioned an independent committee to conduct the review.
It's been 15 years since the last update, according to the news. It's certainly overdue though citizens have mixed feelings about the actual figures.
From a technical standpoint:
♦️Salary range will be broadened, with the ratio pegged against the entry-level Minister salary.
♦️ Minister's salary is benchmarked to the median income of the top 1,000 Singaporean earners with a 40% discount to reflect the spirit of public service.
♦️ Pay mix: 65% fixed (12 months plus a 13th month) and 35% variable.
♦️ Variable component comprises: 1 month annual variable pay, 3 months' performance bonus, and 3 months' national bonus.
♦️ National bonus tied to 4 indicators: (1) unemployment rate, (2) real income growth for median Singaporeans, (3) real income growth for lower-income Singaporeans and (4) real GDP growth.
The alignment to the new benchmark won't kick in immediately but a 9% salary adjustment will. It’s a little over 2x inflation.
For context: once the new framework is in place, the Prime Minister's revised annual salary works out to about €2.45m.
Singapore government leverages on pay competitiveness to attract and retain the right talent (among other factors)… same as most private organizations.