This piece is part of MS Explains, a segment where we provide clarity to common or key topics, making them easier to digest.
In Singapore, the President is a key figure in politics as the head of state and the custodian of the country’s reserves.
With so many duties, one can’t help but ask how much he or she receives for their hard work.
Among politicians in Singapore, the President represents one of the higher-ranking individuals.
While the Head of State earns one of the highest monthly pay, he or she earns less than the Prime Minister (PM) in a year.
As it turns out, the President’s salary was last revised in 2011 when it dropped from a staggering S$3 million.
According to the Public Service Division (PSD) website, Singapore’s President currently earns S$1.54 million a year.
While he or she earns the same monthly pay as the Prime Minister, the President does not get a Performance or National Bonus.
Source: Halimah Yacob on Facebook
The PSD notes that unlike the PM, the President “does not set national policies”.
Additionally, he or she does not directly govern the country despite being the Head of State with “significant custodial powers”.
According to a White Paper published in 2012 — titled ‘Salaries for a Capable and Committed Govt’ — the National Bonus is linked to the socio-economic progress of average and lower-income Singaporeans.
The following will be considered when deciding on the National Bonus:
Therefore, as Singapore’s President does not play an active role in influencing these factors, he or she does not qualify for the bonus.
So how does the President’s annual salary compare to other ministers and what goes into deciding this amount?
Regardless of the appointment, political salaries follow a standard formula comprising fixed and variable components.
The fixed component refers to how much they earn a month, multiplied by 13 months.
Meanwhile, the variable components pertain to their “individual performance and national outcomes”.
Hence, the formula is as such:
Source: Public Service Division
Much like most of us in the private sector, the Performance Bonus is not a given and has to be earned.
On the other hand, politicians can get an extra National Bonus if they meet the necessary targets.
Therefore, if it’s a good year, a politician can earn up to 20 months’ worth of pay a year.
However, the President can only earn up to 14 months as they only qualify for the Annual Variable Component (AVC).
Based on the 2012 White Paper, the AVC is tied to Singapore’s economic performance.
Therefore, these mid-year and year-end payments can vary between 0 and 1.5 months’ pay.
Now that we have the formula, let’s look at the actual numbers.
In Singapore, how much a minister earns is based on which “grade” they fall under.
There are four grades in total — MR4, MR3, MR2, and MR1 — with the first being the lowest paid.
Based on the PSD website, an MR4 minister’s salary is “based on the median income of the top 1,000 Singapore citizens income earners” — with a 40% discount.
The top income earners would include people like:
However, at the very least, an entry-level minister takes home S$1.1 million a year, according to the 2012 White Paper.
Source: Lee Hsien Loong on Facebook
Meanwhile, the PM of Singapore — at the MR1 pay grade — earns double that, at S$2.2 million annually.
As such, the President earns S$660,000 less than the PM — most of which can be due to the variable components such as the National Bonus.
However, he or she still earns more than the average minister.
That said, both the PM and President earned over S$3 million before the salary revision of 2012.
Channel NewsAsia (CNA) reported that that was the last time political appointment holders’ salaries were revised.
The President saw a 51% cut in annual salary from S$3.02 million to S$1.54 million.
On the other hand, the PM took an estimated 28% cut from S$3.07 million to S$2.2 million.
According to the 2012 White Paper, the revision came after the 2011 General Elections when PM Lee Hsien Loong acknowledged Singaporeans’ concerns over ministerial salaries.
Source: Lee Hsien Loong on Facebook
Since assembling a committee to review the salaries, the Government has adapted to the new benchmark and framework.
In January 2023, news outlets in Singapore like The Straits Times (ST) reported that a review is likely to take place later this year.
The last review of political salaries was conducted five years ago in 2017.
However, ministerial salaries remained the same following it.
Now that you know how much politicians earn in Singapore, does this surprise you? Let us know in the comments.
Featured image adapted from Halimah Yacob on Facebook.
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