Ministerial salaries to increase by up to 9% to S$1.2m, lower than review committee’s recommendation

“The actual remuneration received by an individual minister in any year can therefore be higher or lower than the reference salary, depending on his or her salary point and the variable payouts.”

PM DONATES SALARY INCREASE TO CHARITY

In his speech, Mr Wong said that the prime minister’s salary is set at twice the MR4 benchmark.

“I have decided that, for the next five years – assuming I remain PM – I will donate the full increase in my salary arising from this adjustment,” he said.

He will continue to receive his salary as provided for under the framework, and will then “donate the increase to suitable good causes”, said Mr Wong.

“This is my own decision. I do not expect other office holders to do the same. As a general rule, I do not believe in making a public show of charitable giving.”

Mr Wong said that, as prime minister, he carries the “ultimate responsibility” for the salary framework, and so “it is right that Singaporeans should know what I have decided, and that I am taking these changes forward because I believe they are in Singapore’s interests”.

He will review the position again at the end of five years, taking into account the circumstances at that time.

“I fully expect to continue supporting good causes, as I have always done. But I do not want to make an open-ended public commitment, or to create an expectation that future prime ministers may feel obliged to follow,” he added.

STREAMLINING MINISTERIAL GRADES

The review committee also recommended combining the MR2 and MR3 grades into one, bringing the number of tiers down from four to three, said Mr Wong.

The salary range for each grade will also be widened to plus or minus 25 per cent, he said.

“We agree with these changes. But the basic approach to assessing and differentiating individual salaries will remain the same,” he said.

“After the one-off special adjustment, I will continue to assess ministers and adjust their salaries in the usual way, based on performance.”

On that basis, he expects most ministers who remain at MR4 to be at the lower end of the new salary range – about S$1.35 million – by the end of this term of government.

Mr Wong said that those who excel and take on larger responsibilities may move higher within the range, or be promoted to a higher grade.

“So the revised MR4 benchmark of S$1.8 million is not a target salary that every minister must eventually reach. Ministers can be paid above or below the benchmark, within the prescribed range,” he noted.

OTHER OFFICE HOLDERS

For ministers of state, parliamentary secretaries and mayors, Mr Wong said he would “typically consult their supervising ministers on their performance”, but noted that the final decision on their salary points, grades and bonuses rests with him.

New office holders appointed in the next term will likewise come in at different points within those ranges, taking into account their experience and previous remuneration, he said.

This would over time bring a wider spread in salaries compared to today, which is the purpose of the revised structure, said Mr Wong.

“It gives the PM 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.

While they are still expected to make a “meaningful sacrifice” to enter political service, “we should not make that gap larger than it needs to be”, said Mr Wong.

“Overall, I believe this will give me and future prime ministers a better chance of persuading capable Singaporeans to step forward, and of building the strongest possible team for Singapore,” he said.

The government’s response to the review committee’s recommendations will be debated in parliament on Thursday.