Singapore to Increase Ministerial Salaries by Up to 9 Percent

Singapore will increase the salaries of political office holders by up to 9 percent starting October 15, Prime Minister Lawrence Wong announced on Tuesday. For a minister in the lowest grade, MR4, this adjustment will bring the annual salary to approximately S$1.2 million. This marks the first time ministerial salaries have been changed since 2011.

Prime Minister Wong stated that the increase is necessary to persuade capable Singaporeans to enter politics, particularly those from the private sector. He noted that the gap between political and private sector pay makes leadership renewal more difficult. Wong shared that he had personally approached several senior permanent secretaries and private sector CEOs before the last General Election, but all of them declined the offer.

The government's decision follows a review by an independent committee appointed in December. While the committee recommended raising the benchmark salary for an MR4 minister to S$1.8 million, the government opted for a smaller one off adjustment. Future changes will be based on individual performance and responsibilities rather than a move to the committee's full benchmark.

Regarding leadership transition, Wong highlighted that several senior cabinet members will be 70 or older by the next term of government. He emphasized the need for the next generation to take over for the strength of national institutions. The current salary structure includes four ministerial grades and variable components, such as a National Bonus and an individual performance bonus determined by the prime minister.