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Ministerial salaries to rise by up to 9%, Chan Chun Sing says money should not be incentive to be minister

Ministerial salaries to rise by up to 9%, with entry-level ministers to get S$1.2m from 15 Oct, PM Wong says

Singapore’s political leaders will receive higher salaries from 15 Oct, with ministers getting a one-off increase of up to 9%.

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.

The Government’s response to the 2026 Review of Salaries for Political Appointment Holders and Members of Parliament was delivered in Parliament on Tuesday (8 Sept).

Source: MDDI Singapore on YouTube

Ministerial salaries to increase by up to 9%

The revised salary framework will take effect from 15 Oct, Mr Wong said.

Mr Wong said existing political officeholders would receive a one-off adjustment of up to 9%.

Therefore, an MR4 minister currently earning the S$1.1 million reference salary would receive about S$1.2 million if given the full 9% adjustment.

Furthermore, the revised MR4 reference annual salary will rise from S$1.1 million to S$1.8 million.

The benchmark is based on the median annual income of the top 1,000 Singaporean earners, with a 40% discount.

Mr Wong said the discount would remain to reflect the sacrifice involved in political service.

The benchmark had not been updated for 15 years.

 

Coordinating Minister for Public Services Chan Chun Sing said the adjustment works out to about 3.6% a year when averaged across the period.

This is lower than the annual wage growth experienced by Singaporeans over the same period. Median earners in Singapore saw annual wage growth of about 4.3%, while lower-income earners saw about 4.6%, he said.

Source: MDDI Singapore on YouTube

However, Mr Wong stressed that the benchmark increase does not mean every minister will receive the maximum increase of S$1.8 million.

PM Wong says higher pay is about attracting talent

The salary range for each ministerial grade will also be widened to between 75% and 125% of its reference salary.

Mr Chan said this would give the Prime Minister more flexibility to set salaries according to performance and responsibilities.

New political officeholders will typically start towards the lower end of the range.

Those with established careers may be placed higher within the range, particularly if they are taking a significant pay cut to enter politics.

Source: gov.sg Committee report

Mr Wong said the review was not simply about how much ministers should earn.

He argued that Singapore needs to keep attracting capable people from the public and private sectors into politics.

He said some private-sector CEOs earn “several million dollars a year”, making the opportunity cost of entering politics significant.

“Politics must remain a calling to serve our fellow citizens,” Mr Wong said.

“But if the personal and financial sacrifices become too large, many capable people will simply choose to do something else.”

Ahead of the last General Election, Mr Wong said he approached several senior permanent secretaries and private-sector CEOs about joining politics.

None agreed to make the move.

“We are not trying to match what they earn. We never will,” he said.

“But when we approach people of that calibre, we cannot pretend that the opportunity cost does not exist.”

Source: MDDI Singapore on YouTube

Mr Wong said the Government wants to ensure that the financial sacrifice involved is not “unnecessarily high”.

Mr Chan echoed the same sentiments; however, he stressed that money should not be the main motivation for entering politics.

“If money is your main reason for wanting to be a minister, frankly, you are not the person we are looking for,” he said.

Source: MDDI Singapore on YouTube

MPs’ monthly allowances to rise to S$18,500

MPs, NCMPs and Nominated MPs will also receive higher allowances from 15 Oct.

The monthly allowance of MPs will rise from S$13,750 to S$18,500.

Meanwhile, the allowance for Non-Constituency Members of Parliament will increase from 15% to 30% of an MP’s annual allowance, working out to about S$5,550 a month.

Mr Chan said this takes into account NCMPs receiving full voting rights since 2017.

It also brings their allowance closer to their Parliamentary responsibilities, he said.

Meanwhile, a nominated MP allowance would increase to up to S$2,775 from S$2,064 currently. Their allowance is tied to 15% of the MP allowance.

Source: gov.sg Committee report

PM Wong to donate his salary increase for five years

Mr Wong also announced that he will donate the full increase in his salary, arising from the adjustment for the next five years, assuming he remains Prime Minister.

His salary is pegged at twice the MR4 benchmark.

“The Government will continue to pay me the salary provided for under the framework, which is how our system works,” he said.

“I will then donate the increase to suitable good causes.”

Mr Wong stressed that this was his personal decision and that he did not expect other political officeholders to do the same.

Source: Lawrence Wong on Facebook

Government to review political salary framework every five years

The Government has also agreed to conduct regular independent reviews of the salary framework every five years.

This is intended to ensure that the framework remains relevant to changes in market and socioeconomic conditions.

The latest review comes after political salaries remained unchanged for more than 15 years.

Mr Wong said successive governments had exercised restraint on political pay.

The 2017 review recommended an upward adjustment, but the Government opted not to proceed.

The scheduled 2023 review was also deferred.

Mr Wong said the framework could not be allowed to become outdated indefinitely.

“It would have been easier politically for me to leave things as they are,” he said.

“But that would not be the right thing to do.”

Source: MDDI Singapore on YouTube

Parliament to debate changes on Thursday

Parliament will debate the Government’s response to the salary review on 10 Sept.

No amendments will be allowed, and the motion will not be put to a vote.

Mr Wong said the decision was ultimately about ensuring Singapore can continue attracting capable people into political service.

“Our responsibility is to preserve that capacity for those who come after us,” he said.

“So let us make the right decision – to keep the path open for capable and public-spirited Singaporeans to step forward, lead and serve.”

Also read: Harpreet Singh’s ‘Singaporeans save 3 ministerial salaries’ comment draws mixed response from netizens

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Featured image adapted from MDDI Singapore on YouTube.

Prudence Lim

Prudence is constantly on the lookout for new ways to broaden her worldview, whether it be through journalism, cross-cultural experiences or simply meaningful conversations.

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