Revised salary framework for political appointment holders and MPs: What are the key changes?

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SINGAPORE – The Government will adopt the recommendations of an independent review committee to adjust political salaries, including those of ministers.

Prime Minister Lawrence Wong and Coordinating Minister for Public Services Chan Chun Sing provided the Government’s response to the recommendations in Parliament on Sept 8. The House will debate the matter on Sept 10.

Chin Soo Fang explains the key salary revisions, how they are determined, and what they mean for political office-holders.

1. What are the key changes to political salaries?

Existing political appointment holders will receive a one-off adjustment of up to 9 per cent from Oct 15, depending on individual circumstances including performance. Any subsequent changes will be based on individual performance and responsibilities.  

Ministers

The committee has recommended updating the Ministerial Grade 4 (MR4) benchmark from $1.1 million to $1.8 million. 

While the Government accepts the committee’s recommendation to update the reference salary for the MR4 benchmark, PM Wong has decided not to move existing political appointment holders immediately to the updated benchmark. 

Instead, existing political appointment holders will receive a one-off adjustment of up to 9 per cent from Oct 15, depending on individual circumstances, including performance. 

This means a minister receiving a $1.1 million annual salary may receive an increment of almost $100,000, bringing his annual salary to around $1.2 million. Beyond this one-off adjustment, any subsequent changes will be based on individual performance and responsibilities. 

The revised MR4 benchmark of $1.8 million is not a target salary that every minister must eventually reach, as he or she can be paid above or below the benchmark, within a prescribed range.

PM Wong expects most ministers who remain at MR4 to be at the lower end of the new salary range – about $1.35 million – by the end of this term of government, which began in 2025. Each term typically lasts about five years.  

At present, 10 out of 16 ministers are at MR4. The other six are at higher grades, reflecting their seniority and heavier responsibilities, including those serving as coordinating ministers. 

Chan said that the adjustment works out to be about 3.6 per cent per year. This is because the MR4 reference has not been updated for 15 years.

The Government also accepts the committee’s recommendation to widen the monthly salary range for each grade. 

For ministers, the salary range will be 75 per cent to 125 per cent of the reference salary at each grade. This is in line with market practice, where ranges are generally wider. It also gives greater room to cater for people joining political service from different backgrounds and at different stages of their careers.

The committee has also recommended combining the MR2 and MR3 grades. This means there will be three ministerial grades instead of four. The salary range for each grade will also be widened to plus or minus 25 per cent. 

The grades for mayors, senior parliamentary secretaries and parliamentary secretaries will also be merged for simplicity. The salary range will be wider, at 70 per cent to 130 per cent of the reference salary at the merged grade.

Prime Minister, Deputy Prime Minister, President, Speaker and Deputy Speaker

PM’s salary is set at twice the MR4 benchmark. His pay will increase from $2.2 million to $3.6 million. PM Wong has decided that for the next five years, he will donate the full increase in his salary – amounting to some $1.4 million yearly – arising from this adjustment.  

The Deputy PM’s pay will increase from about $1.8 million to $3 million.

The President’s salary will be raised from about $1.5 million to $2.5 million.

The Speaker’s salary will also continue to be pegged at 50 per cent of the MR4 minister reference salary. It will go up from $550,000 to $900,000 annually.

The Deputy Speaker’s annual package will remain pegged at 15 per cent of the Speaker’s salary. It will be raised from $82,500 to $135,000 yearly.

Beyond this adjustment, the committee had recommended studying the peg for Speaker and Deputy Speaker, taking into account how their roles and responsibilities may have evolved over time. 

MPs, NCMPs and NMPs

The monthly allowances for MPs will increase from $13,750 to $18,500 to account for inflation. 

The allowance of Non-Constituency MPs (NCMPs) will be increased from 15 per cent of an MP’s annual allowance to 30 per cent. This translates to $5,550 monthly. This takes into account full voting rights for NCMPs since 2017, and brings the allowance into better alignment with their parliamentary responsibilities. 

Nominated MPs’ allowances will continue to be pegged at 15 per cent of the MP’s allowance, which is an updated annual allowance of $38,900.

2. Who reviews the political salaries?

The Government appointed an independent committee to review the political salary framework in December 2025.   

The eight-person committee tasked with the current review is chaired by Gan Seow Kee, chairman of the Singapore LNG Corporation and a member of the Council of Presidential Advisers. The committee comprises seven other members from across the private and people sectors. 

The committee also engaged Mercer, a leading global HR consultant, for technical expertise and to provide additional information on pay practices and levels. 

It has affirmed that the framework remains sound, while updating its parameters and recommending some refinements. 

3. How are political salaries calculated?

Ministerial salaries are benchmarked to the median income of the top 1,000 earners who are Singapore citizens, with a 40 per cent discount to reflect the ethos of public service.

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

The salary paid to political appointment holders comprises both fixed and variable pay components. About 65 per cent of the annual MR4 reference salary is fixed, and the remaining 35 per cent is variable.

The variable pay components, which form part of the total annual salary, are paid depending on both individual performance, as well as national outcomes achieved based on a National Bonus framework.  

The National Bonus is based on four equally weighted socio-economic indicators: the real median income growth rate of the average Singaporean, real income growth rate of the lowest 20th percentile of Singaporean income earners, unemployment rate of Singaporeans and real gross domestic product growth rate. 

The Government has accepted the committee’s recommendations to update the targets for the National Bonus indicators to tighten focus on Singapore’s socio-economic priorities and reflect the Republic’s maturing economy. The updated targets will be effected on Jan 1, 2027.

It has also agreed to explore the inclusion of a robust Quality of Life measure in the National Bonus framework when this becomes available, as the committee had suggested. 

4. What are the core principles of the salary framework?

These are calibre, commitment and a clean wage.

The first ensures that the salary framework takes reference from market benchmarks, and individuals of the right calibre are not deterred from stepping forward to lead the country.

Commitment is reflected in the discount (now pegged at 40 per cent) relative to market benchmarks to reflect the ethos of political service.

A clean wage means no hidden perks, as transparency and integrity in remuneration remain fundamental to maintaining public trust.

In addition, the Government affirms that salaries should be clearly linked to both individual and collective performance, based on outcomes that matter to Singaporeans and reflect socio-economic progress.  

5. How much will multiple appointment holders earn?

All political appointment holders will get only one salary package, even if they hold two or more appointments or portfolios. 

Said Chan, who is also Defence Minister: “The principle is simple – one person, one salary. Holding more portfolios does not mean receiving more pay.”

6. How much will these recommended changes cost the Government?

It will cost about $5 million more annually, if the maximum of 9 per cent is applied to all the political appointment holders, and about $6.6 million more annually for the MPs. 

7. When were the ministerial salaries last adjusted?

The structure of political salaries has been frozen for 15 years.  

The current salary framework was established in 2012, when the Government accepted the recommendations of the committee led by Gerard Ee. The recommendations were implemented retrospectively from May 2011, when the Government of the day took office. 

Since then, the political reference salaries have not been updated. In 2017, the Government decided not to proceed with adjustments after an independent review because of prevailing economic circumstances.

It further held back a review in 2023, citing more pressing issues that it had to deal with. These included a more uncertain geopolitical situation with conflicts in the Middle East and Ukraine, heightened political contestation, and significant uncertainties in the global economy.  

8. Why is there a need for the salary revision now?

The revision will give the Government a better chance of building a capable and committed political leadership to meet the long-term needs of Singapore. 

PM Wong said good leadership is even more crucial as Singapore navigates a more uncertain and troubled world.  

The salary revision will give him more room to differentiate pay according to performance, and importantly, to bring in people with substantial experience from outside Government, especially those already earning significantly more in the private sector, he said.   

“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,” he added.

He noted that ministerial salaries have fallen behind as salaries elsewhere have been adjusted.

“The gap is most obvious when compared with the private sector. But even in the public service, some senior permanent secretaries earn more than ministers.”

Chan said the review is fundamentally about giving Singapore a better chance to build a first-rate team to serve Singapore and Singaporeans. “So, we want to be able to say to capable Singaporeans, ‘Singapore needs you, and while political service involves sacrifice, it will not come at an unreasonable cost to you and your family’.”