SmileTutor Blog General Others Here’s How You Should Spend Your 4-9% Increased MOE Salary

Here’s How You Should Spend Your 4-9% Increased MOE Salary

MOE Salary

On the same day we published our article, SG50: Let’s Celebrate and Honour Our MOE Teachers, Ministry of Education (MOE) made a big announcement.

In recognition for their outstanding service, our MOE teachers, also known as Education Officers (EO) will receive salary increments of between 4-9%.

How much exactly is this increase?

Based on information provided by our MOE teachers, the estimated salary increase is as follows:

For a new teacher with less than 5 years of teaching, a 5% increase amounts to about $2,500/year.

For senior teachers between 10-30 years of teaching and those at the Head of Department (HOD) level, they will receive a 9% increase which amounts to about $7,200/year.

Vice-Principals and Principals equivalent are assessed under the Superscale “H” and will receive a 4% increase, which amounts to about $10,000/year.


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This is how you feel.

Yes, the extra salary is certainly not a small amount. But before you jump in joy and celebrate your newfound wealth, consider what would happen if you do not plan how to spend this money.

Without a proper plan to use these extra cash, it will undoubtedly be squandered away in trivial things such as that latest LV bag you’ve been eyeing for months.

So, here’s 4 smart ways you can use the extra salary provided by MOE:

1. Set Up An Emergency Fund

MOE Teachers

Watch out when sh*t hits the fan

We’ve all experienced moments where large, unforeseen expenses arise out of the blue.  It may not be anything serious, but some emergencies can be minor yet urgent. For instance, your car may suddenly break down and require $1000-2000 for repairs.

When such incidents occur, you’ll either be extremely happy that you had set aside an emergency fund or cry out in anguish at how to find money to cover these expenses.

Save yourself from the embarrassment and trouble of asking relatives for money when unexpected things happen. Use this extra money from MOE and set it aside as that emergency fund you’ve always needed.

2. Pay Off Outstanding Debt

Guess what’s the leading cause of poorness? You guessed it – debt! If you want to achieve your retirement dreams early, it’s absolutely vital that you reduce parasitic debt as much as possible. That 10% credit card debt you’ve been paying off in interest for that new sofa is money down the drain each month. If you’ve outstanding debt, using that extra few hundred dollars from MOE each month to pay off your outstanding debt is always a good choice.

3. Save For The Future

How much does it cost to raise a child from infancy to tertiary? $170k to $700k, says this article published on The Sunday Times.

Furthermore, be it for your retirement, wedding ceremony, medical expenses, or a new house, it’s widely accepted that in order to survive in Singapore, you need money.

It is prudent to set up a savings account if you haven’t done so and set aside this extra dollars. You can also invest it in your CPF Ordinary Account, which offers 2.5% interest rate per annum, higher than what local banks offer. Over 30 years, 2.5% per annum will easily double your money.

4. Splurge A Little

Maybe you’re in the mood to spend, or maybe, you’re fortunate enough to already have a sizeable emergency fund, a nice savings account and enough money for your future. Then, sometimes it’s a good idea to splurge a little!

What can $2,500 or $7,200 buy?

You can buy your kid half of Toys-R-Us. You can go for 100 hours of massage at various hotels. You can finally buy that LV bag you’ve been eyeing so badly!

Okay, on a serious note… 

After a year of slogging hard for your students, perhaps you can treat yourself and your family to a luxurious holiday during the December school holidays. Google “Award Winning Holidays” and you’ll find all sorts of amazing holidays that will get you pumped up.

MOE Tuition

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This could be you! Thanks to MOE

Sounds good? Perhaps you can put the money to good use and buy your aged mother a brand new massage chair, and take her out to an expensive meal to thank her for raising you up.

Hey, if you’re kind enough, you can even consider donating money to the kids in the local orphanage or to starving children in Africa!

After all, one can argue that it’s bonus money from MOE. However you like to spend it, it’s up to you!

P.S. If the above suggestions doesn’t interest you, have you considered investing in your child’s future by hiring a home tutor?

How would you spend your new salary? Let us know in the comments below!

Rum Tan

Rum Tan is the founder of SmileTutor and he believes that every child deserves a smile. Motivated by this belief and passion, he works hard day & night with his team to maintain the most trustworthy source of home tutors in Singapore. In his free time, he writes articles hoping to educate, enlighten, and empower parents, students, and tutors. You may try out his free home tutoring services via or by calling 6266 4475 directly today.