Prime Minister Lawrence Wong has explained how Singapore’s revised political salary framework will work, stressing that ministers will not automatically receive the full increase recommended by an independent committee.
Speaking on Sep. 8, Mr Wong said the Government has accepted the committee’s recommendations but will not immediately move political officeholders to the new salary benchmarks.
Instead, a one-off adjustment of up to 9 per cent will be made to the salaries of political officeholders. However, Mr Wong stressed that the increase will not necessarily be the same for everyone, as individual circumstances will be taken into consideration.
These factors include an officeholder’s performance and when their salary was last adjusted.
Ministerial salaries will continue to depend on performance
Mr Wong also explained how the remuneration system for ministers works under the current framework.
There are currently four ministerial grades — MR4, MR3, MR2 and MR1 — with each grade containing a range of salary points that determine a minister’s fixed pay.
The Prime Minister decides which grade each minister belongs to, as well as where they are positioned within the relevant salary range. Individual performance bonuses are also determined each year.
At present, 10 of Singapore’s 16 ministers are placed at MR4, while the remaining six are at higher grades. Mr Wong said this reflects differences in seniority and responsibilities, including the additional duties held by Coordinating Ministers.
Ministers can also move between different salary points within their grade over time depending on their performance.
New salary structure will provide greater flexibility
The independent committee has recommended changes to the existing framework, including reducing the number of ministerial grades from four to three.
Under the revised structure, MR2 and MR3 will be combined into a single grade. The salary range within each grade will also be widened to 25 per cent above or below the reference point.
Mr Wong said the Government had agreed to these changes while retaining the fundamental principle of differentiating individual remuneration according to performance.
After the one-off adjustment is implemented, ministers will continue to have their salaries reviewed and adjusted through the existing process.
“On that basis, by the end of this term of government, I expect most Ministers who remain at MR4 to be at the lower end of the new salary range – and that’s about S$1.35 million,” Mr Wong said.
Ministers who perform exceptionally well or take on greater responsibilities could move higher within their salary range. They could also be promoted to a higher ministerial grade.
The same principles will apply to other political officeholders, including Ministers of State, Parliamentary Secretaries and Mayors.
Government says salary framework is also about attracting talent
Mr Wong said the revised structure would give the Prime Minister greater flexibility when differentiating salaries according to an individual’s performance and responsibilities.
He also highlighted another purpose of the framework: attracting experienced individuals from outside government into political service.
Some potential candidates may already be earning substantially more in the private sector, making the financial gap between their existing careers and political office an important consideration.
“We will still expect them to make a meaningful sacrifice to enter political service. But we should not make that gap larger than it needs to be,” Mr Wong said.
More than one-third of a minister’s annual remuneration already comes from variable components, including the National Bonus and individual performance payments.
This means the amount a minister actually receives in a given year can be higher or lower than the reference salary, depending on their salary point and the variable payouts they receive.
Mr Wong said Singapore’s ability to maintain effective government over the decades should not be taken for granted.
“Good government did not come naturally to Singapore. It was built deliberately over many years. And there is nothing automatic about sustaining it,” he said.
He added that Singaporeans have benefited from a government capable of planning ahead, making difficult decisions and delivering results for more than six decades.