Benchmark ministerial pay to rise to S$1.8 million; ministers to only get one-off increase of up to 9%

[SINGAPORE] Benchmark political salaries and allowances for MPs will go up with effect from Oct 15, although not all officeholders will get an immediate pay raise.

The benchmark salary for entry-grade MR4 ministers will rise to S$1.8 million a year, from S$1.1 million previously, Prime Minister Lawrence Wong announced in Parliament on Tuesday (Sep 8).

Meanwhile, the monthly allowances for MPs will increase to S$18,500, from S$13,750 before.

These increases – which follow recommendations from an independent review committee – will also affect the salaries of the President, Speaker, Deputy Speaker and Prime Minister.

The Prime Minister’s pay is set at twice the MR4 reference, although PM Wong committed to donate his full annual increment – which works out to S$1.4 million – to “suitable good causes” for the next five years.

Other political officeholders will receive a one-off adjustment of up to 9 per cent, with the exact size of each increment to depend on factors such as individual performance.

For instance, an MR4 minister earning the old reference salary will see their pay increase to about S$1.2 million, rather than to the new benchmark of S$1.8 million.

“Any subsequent changes will be based on individual performance and responsibilities,” PM Wong added.

Ministerial salaries fall in a range around the benchmark point for each grade, and include variable components that depend on individual performance and the national economy.

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Out of Singapore’s 16 ministers, 10 of them now sit at the MR4 grade. To reflect their seniority and duties, the rest are ranked higher, though the MR2 and MR3 grades will now be combined. The salary range for each grade will also be widened.

PM Wong told the Parliament that most ministers who remain at the MR4 level are expected to earn about S$1.35 million by the end of this term of government, “so, to be clear, the revised MR4 benchmark of S$1.8 million is not a target salary that every minister must eventually reach”.

The same approach will apply to Ministers of State, parliamentary secretaries and mayors, while new officeholders appointed in the next term of government will enter at different points in the salary range.

“Over time, we should expect a wider spread in salaries than we have today – within the current framework, but a wider spread of salaries. And this is the purpose of the revised structure,” said PM Wong.

“It gives the Prime Minister more room to differentiate pay according to performance, and, importantly, to bring in people with substantial experience from outside government, especially those already earning significantly more in the private sector.”

He said that the new pay structure makes for “a better chance of persuading capable Singaporeans to step forward, and of building the strongest possible team for Singapore”.