Lawrence Wong says it’s a ‘myth’ that civil servants earn more as ministers, sometimes it’s a pay cut

PM Wong defends political pay changes, says failing to attract talent could affect Singapore for decades

Prime Minister (PM) Lawrence Wong has sought to dispel what he called a “myth” that civil servants receive a pay rise when they enter politics, saying they can instead take a pay cut.

“That does not happen. There is no increase when civil servants join politics. Sometimes it’s even a pay cut,” Mr Wong said in Parliament on Thursday (10 Sept).

He added that civil servants who remain in public service and continue performing well would “very likely” earn more in subsequent years than if they entered politics.

This comes as Parliament debates the up to 9% raise for ministerial salaries.

For reference, with the salary increase, an MR4 minister, or an entry-level minister, earning the current reference salary of S$1.1 million could receive about S$1.2 million after the full 9% adjustment.

11 members of the Parliament spoke in the debate before Mr Wong.

PM Wong says political service can come with financial sacrifice

Mr Wong was responding to questions about whether Singapore’s ministerial salary framework was appropriate, including its use of the country’s top 1,000 earners as a benchmark.

“The question is this: What is the appropriate, defensible, and principled basis for determining ‘how much is enough’?,” Nominated Member of Parliament Azhar Othman asked.

In his speech, Mr Wong stressed that the top 1,000 earners are a reference point.

“Plainly, we do not,” he said when asked if the Government intended to recruit political leaders from this group. “The benchmark is a reference point.”

He said the benchmark broadly captures the opportunity cost faced by people Singapore hopes will step forward for political service.

These could include private-sector leaders, civil servants, professionals, and others.

Mr Wong also compared ministerial pay with the salaries of senior permanent secretaries and appellate judges.

Their salaries are determined under separate frameworks, but are now higher than both the current MR4 ministerial benchmark and the revised S$1.8 million benchmark.

He said this did not mean these salaries should be lowered or that ministers should simply be paid the same.

Rather, the different frameworks had arrived at “broadly comparable orders of magnitude”.

Mr Wong says he could have ‘kept [his] pension, earned more, and faced far less public scrutiny’

Mr Wong also shared his own experience of leaving the Civil Service to enter politics in 2011.

At the time, he had worked in the Civil Service for just under 15 years.

He said he only realised after resigning that he would lose his pension because he was just short of the 15-year qualifying period.

“You need 15 years to keep your pension,” he explained.

“I was just short. I lost my pension.”

Mr Wong further shared anecdotes where some “well-meaning friends” asked him if he regretted leaving Civil Service, in so losing the opportunity to earn more while still serving Singapore and without the public scrutiny.

“My answer is ‘No’,” said the PM.

He added that political service involved a different level of responsibility, including making difficult choices, setting strategic direction, and ultimately taking responsibility for outcomes.

Ministerial pay benchmark to rise from S$1.1M to S$1.8M

The Government will raise the MR4 reference salary from S$1.1 million to S$1.8 million under the revised framework.

However, current ministers will not immediately be moved to the new benchmark.

Instead, they will receive a one-off adjustment of up to 9%, taking into account factors such as individual performance and responsibilities.

Mr Wong said subsequent salary adjustments would be based on individual performance and responsibilities rather than being general increases.

He expects most ministers who remain at MR4 to reach the lower end of the new salary range, around S$1.35 million, by the end of the current term.

“If we were to make an inflation adjustment like we are doing for MPs, the MR4 reference salary would be S$1.5 million just for inflation adjustment alone,” he said.

“So we are not giving ministers a larger immediate adjustment than MPs. In fact, we are taking longer to catch up.”

PM Wong says higher pay is not meant to entice people into politics

Mr Wong said the Government does not believe higher salaries should be used to persuade people to enter politics.

“No one should enter politics for the money,” he said.

He argued that people must first have the motivation to serve, while remuneration becomes a practical consideration for those who are already prepared to step forward.

This is particularly relevant for people in their 40s who may already have mortgages, children and other financial commitments based on their existing careers, he said.

“Competitive salaries do not create the motivation to serve,” Mr Wong said.

“But they can make it possible for someone who already has that motivation in the first place to step forward.”

PM Wong says ministers face different demands from civil servants

Mr Wong also explained that Singapore expects ministers to do more than simply oversee their ministries.

Ministers must contest elections and win voters’ confidence, but are also expected to master their briefs, lead their ministries and make major decisions, he said.

They are required to develop and implement reforms, bring the public along and see changes through.

“In Singapore, we expect our ministers to be effective politicians, effective executives, and effective leaders,” he said.

He added that failing to attract enough capable people into political leadership could gradually affect the quality of government over the next 15 to 25 years.

PM Wong says salary framework is about opportunity cost, not money

Mr Wong said the purpose of the salary framework was not to entice people into politics with money.

Instead, it aims to prevent financial considerations from becoming an unnecessary barrier for people who are willing to serve.

He said Singapore needs people with “character”, competence and the willingness to accept public scrutiny and make difficult decisions.

“If too many capable people conclude that political service asks for sacrifices which are just too great, then over time we will have fewer people prepared to step forward,” he said.

“Eventually, the quality of our leadership will suffer, and Singapore will suffer the consequences.”

The political salary framework will continue to be reviewed independently every five years, Mr Wong said.

He added that the Government remained open to suggestions for improving the framework.