The following is my answer to a Quora question: “How
are Singapore government ministers’ salaries tied to their country’s GDP?”
The base salary of our ministers are not pegged to the
GDP. Gross Domestic Product is a measure
of the value of economic activity within the country. This is the sum of the prices of all final
goods and services produced by the economy during a period of time. It is dependent largely on macroeconomic
conditions outside the immediate control of the government. As such, it is illogical for their salary to
be pegged to a KPI they have no control over.
There is a variable component to ministerial
remuneration, the bonuses, that is loosely pegged to GDP. When the country does well, public servants
should share in the wealth. And when the
country does not for a prolonged period of time, they are expected to take a
pay cut. This is not mandated by law, by
decided upon by the cabinet.
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