Government defers consideration of political salaries until impact of Middle East conflict is clearer

[SINGAPORE] The committee reviewing political salaries has submitted its recommendations, but the Government will defer considering them until the impact of the conflict in the Middle East on Singapore is clearer.

The committee submitted its recommendations to the Government in April, said Coordinating Minister for Public Services Chan Chun Sing on May 6 in a written parliamentary reply to Mr Alex Yam (Marsiling-Yew Tee GRC).

Mr Yam had asked about the status of the review in view of recent global events.

“The Government recognises that the Middle East conflict is still ongoing, causing major economic uncertainties and clouding the outlook for Singapore,” said Mr Chan, who is also Defence Minister.

It will release the committee’s report together with the Government’s response “at the appropriate time”, and MPs will have the opportunity then to review the report and government response together “for a more meaningful debate”, he added.

An eight-person committee was formed in January to review the salaries of Singapore’s political appointment holders, who include all ministers and MPs.

It is chaired by Mr Gan Seow Kee, who is chairman of the Singapore LNG Corporation and an alternate member of the Council of Presidential Advisers.

The committee was asked to recommend the appropriate salary levels based on the current salary framework, and propose refinements where necessary so that the framework continues to be relevant.

The salaries have not been adjusted since 2012, when the Government accepted a review committee’s recommendations that put in place the current salary framework.

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This is the second time in recent years that changes to political salaries have been deferred due to global instability.

In 2023, the Government deferred such a review, with Mr Chan saying that it was dealing with other pressing issues.

These included a more uncertain geopolitical situation with conflicts in the Middle East and Ukraine; heightened geopolitical contestation; and significant uncertainties in the global economy that impacted Singapore’s economy, wages and inflation outlook.

The last review was done in 2018. A committee chaired by accountant Gerard Ee recommended then that political salaries be adjusted annually in line with the movement of benchmark salaries, which it noted had gone up by 9 per cent since the salary framework was put in place.

However, the Government decided not to make any changes then. It said the salary structure remained valid and there were economic uncertainties in the previous years.

Under the framework, ministerial salaries are benchmarked to the median income of the top 1,000 earners who are Singaporean citizens, with a 40 per cent discount to reflect the ethos of political service.

The top 1,000 earners include people in senior management positions such as chief executives, chief operating officers and chief financial officers; people working in the financial services such as bankers, traders and asset managers; and professionals such as lawyers, doctors and accountants.

The reference monthly salary for an entry-level minister is S$55,000, and the salary levels of other political appointment holders are determined based on their salary ratios to the entry-level minister pay, reflecting their roles and responsibilities.

The framework covers the salaries of all political appointment holders, including Non-Constituency MPs and Nominated MPs, and took effect from May 2011. THE STRAITS TIMES