MPs’ monthly allowance to be raised to $18,500 from $13,750

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SINGAPORE – Monthly allowances for MPs will be raised to $18,500 from the current $13,750 from Oct 15, to account for inflation.

The Government will be studying how to delink MPs’ allowances from being pegged to ministerial salaries to account for the differences between the two types of roles, said Coordinating Minister for Public Services Chan Chun Sing. This comes after the 2026 Salary Review Committee reviewing political salaries recommended doing so.

MPs’ allowances are presently pegged to 17.5 per cent of the salary benchmark for junior ministers, and comprise a monthly allowance, a 13th-month bonus, and an annual variable component that is based on Singapore’s economic performance. The changes mean that an MP’s annual allowance will increase from $192,500 to $259,000, assuming a one-month annual variable component, based on the committee’s report.

An MP receives an allowance rather than a full-time salary.

Chan said the increase in MPs’ allowances accounts for inflation and is a “practical update” to ensure that MPs are adequately supported in discharging their duties on the ground. He was speaking on Sept 8 in Parliament, giving the Government’s response to the latest review of salaries for political appointment holders and MPs.

The allowances and salaries of political appointment holders and MPs were last adjusted in 2012, with changes backdated to 2011, when the new term of government started.

Chan said the Government accepts the committee’s view that the latest adjustment references the 2012 salary review, which had assessed “that the level of MP monthly allowance was appropriate at the time”. Chan also said the committee had observed that the considerations for the remuneration of “community-related roles such as MPs and mayors may differ from those for full-time political appointment holders”.

Therefore, the committee recommended that the Government study “establishing a basis for sizing the payments in a way that is delinked from the MR4 benchmark, but that remains adequate for these roles to carry out their duties faithfully and effectively”.

The MR4 benchmark, or Ministerial Grade 4, is the entry-level grade for ministers.

Prime Minister Lawrence Wong, who also spoke in Parliament on the Government’s response to the committee’s recommendations, said Singapore chooses not to treat the MPs’ allowance as a token allowance. “It is a substantial allowance because MPs carry substantial responsibilities in Parliament and in their constituencies,” he said, adding that providing a proper allowance has enabled both PAP and WP to recruit and field strong candidates.

PM Wong said that the result of this can be witnessed in the House, where “we have MPs with a wide range of backgrounds and experience, who bring different perspectives to our debates”.

“We may disagree strongly across the aisle, but the quality of debate is high, and Singapore is better for it,” said PM Wong.

He added: “If we want our political system to remain effective, we cannot allow its basic terms of service to drift further and further away from reality. That applies to MPs’ allowances.”

Chan said that the Government also accepts the 2026 committee’s recommendation to increase the allowance of Non-Constituency MPs (NCMPs) from 15 per cent of an MP’s annual allowance to 30 per cent. This translates to $5,550 monthly, or $77,700 annually, assuming a one-month annual variable component.

“This considers the conferment of full voting rights for NCMPs since 2017, and brings the allowance into better alignment with their parliamentary responsibilities.”

As for Nominated MPs (NMPs), the Government has accepted the committee’s recommendation to retain the current peg at 15 per cent of the MP allowance. This means that NMPs will receive $38,900 annually, said the committee’s report, which noted that the role of an NMP has remained the same.