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From $1.1m to $1.8m: Government accepts raising entry-level minister benchmark pay

The Government will raise the salary benchmark of entry-level ministers at the MR4 grade to $1.8 million, Prime Minister Lawrence Wong announced in Parliament on Tuesday (Sept 8).The norm annual ministerial wage has remained at $1.1 million since 2011.In a ministerial statement on Tuesday, PM Wong said the Government accepts the new benchmark level proposed by the independent committee which...

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From $1.1m to $1.8m: Government accepts raising entry-level minister benchmark pay
From $1.1m to $1.8m: Government accepts raising entry-level minister benchmark pay

The Government will raise the salary benchmark of entry-level ministers at the MR4 grade to $1.8 million, Prime Minister Lawrence Wong announced in Parliament on Tuesday (Sept 8).

The norm annual ministerial wage has remained at $1.1 million since 2011.

In a ministerial statement on Tuesday, PM Wong said the Government accepts the new benchmark level proposed by the independent committee which reviewed the salary structure of political office holders earlier this year .

Under the updated salary framework, which takes effect on Oct 15, elected Members of Parliaments (MPs) will receive a higher fixed monthly allowance of $18,500, up from $13,750.

The remuneration of the President, Speaker and Deputy Speaker will also be adjusted.

The prime minister's salary is double that an entry-level minister — which means PM Wong's salary increment will be $1.4 million. He told Parliament on Tuesday that this amount will be fully donated to "suitable good causes" for the next five years should he remain prime minister.

And the new MR4 benchmark figure does not mean all ministers within the grade will reach the reference pay of $1.8 million.

There are currently four ministerial grades — MR4 to MR1 — with each grade comprising a range of salary points that determines a minister's fixed pay.

One-off adjustment of up to 9%

PM Wong said a one-off adjustment of up to nine per cent will be applied to the current wages of political office holders.

This adjustment will vary for each minister depending on individual circumstances, including performance and when their salary was last adjusted.

For example, an MR4 Minister earning the current reference annual salary of $1.1 million will receive a new salary of about $1.2 with the full nine per cent adjustment.

The reference pay includes fixed pay and variable components including bonuses based on assumed individual performance and the National Bonus.

"Thereafter, there will be no further special adjustments to close the gap to $1.8 million. Instead, any subsequent changes will be based on individual performance and responsibilities," PM Wong added.

According to him, 10 of 16 ministers are on the MR4 grade.

The new framework will combine grades MR2 and MR3, and the salary range for each grade will also be widened to plus or minus 25 per cent, as recommended by the review committee.

Ministers' pay to remain tied to performance: PM Wong

PM Wong said he will continue to assess the ministers and adjust their salaries based on performance.

"On that basis, by the end of this term of government, I expect most Ministers who remain at MR4 to be at the lower end of the new salary range — about $1.35 million," he added.

"Those who excel and take on larger responsibilities may move higher within the range, or be promoted to a higher Ministerial grade."

The salaries of other officeholders — Ministers of State, Parliamentary Secretaries and Mayors — will be assessed and adjusted using the same approach.

PM Wong said new office holders will likely assume position at different points within the reference salary ranges under the revised framework.

"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 stated.

"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."

Parliament will debate the political salary review on Thursday (Sept 10).

lim.kewei@asiaone.com

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