PM decided to donate his pay hikes a while ago

PRIME Minister Lee Hsien Loong's decision to donate the increase in his salary over the next five years to charity was taken a while ago.

It was made 'using his heart, not his head' - and had nothing to do with any pressure arising from the ministerial pay increase announcement, Dr Vivian Balakrishnan said yesterday.

Mr Lee made the decision public on Wednesday while wrapping up a three-day parliamentary debate on the pay rise for ministers and civil servants.

The Government announced on Monday that the annual salaries of ministers at the starting grade of MR4 would go up from the current $1.2 million to $1.6 million.

The Prime Minister's salary will rise from $2.5 million a year to $3.1 million.

Dr Balakrishnan said yesterday that the move to raise pay was 'politically difficult' but the right thing to do.

'I think we've got to stop talking about money. Let's get on to the work that needs to be done, deliver what we have promised and make sure we do good by Singapore,' said the Minister for Community Development, Youth and Sports.

He was talking to reporters at the opening of the Singapore Girls' Home at Defu Avenue.

He was one of two ministers who spoke on the pay issue yesterday - the other was Defence Minister Teo Chee Hean, who is overseeing the revisions.

Mr Teo believes the Parliament debate allowed people to see why the increases are important for Singapore's future.

He recounted how better pay helped stop the trend of people turning away from the teaching profession.

'I came to the Ministry of Education in 1997. We were losing teachers faster than we were recruiting them,' Mr Teo said at an exhibition at Ngee Ann City to mark 40 years of national service.

The teachers were demoralised as workload and responsibilities were going up.

But the conditions were improved and pay raised - and more people began coming in.

'When you pay people properly, you have good quality, an upward spiral and better service. I think this applies throughout government,' he said.

Both he and Dr Balakrishnan - asked if they, too, would donate their pay rise to charity - said such things are private matters.

They added that they do not believe in ostentatious generosity.

In a separate interview with The Straits Times, Mr Teo spoke on using private sector pay as a benchmark for ministers' salaries.

He acknowledged that there is no perfect way, but added that it 'strikes me as being the correct principle'.

However, some of the suggestions made in Parliament this week were good, he said, citing a call to review the professions included in the formula.

'But we shouldn't make frequent, drastic changes in the formula for setting the benchmark. Otherwise it will be difficult to compare from year to year.'