The salary framework for Ministers and Members of Parliament are based on the following key principles to achieve competent and honest government:
1. Remuneration is based on a “clean wage” policy. The salaries are transparent, with no hidden components or perks such as housing allowance or tax exemptions.
2. Salaries are benchmarked against jobs of comparable size and responsibility to reflect the possible alternative careers that persons of high capability would forego when entering politics. Salaries are set at comparable levels so as not to deter such able persons from taking on political leadership roles.
3. Benchmarked salaries however are discounted to demonstrate the sacrifice involved in public service, as politics is a calling and a privilege, and those who serve must have a sense of duty to the nation and a desire to contribute to the public good.
Note: On 21 May 2011, Prime Minister Lee Hsien Loong announced the formation of a Committee to review salaries of the President, Prime Minister and political appointment holders. The Committee expects to complete the review by the end of the year. The information provided below is based on the current remuneration for Ministers and allowance for Members of Parliament and will be updated based on the recommendations of the Committee.
Only Ministers who have served at least eight years as an office-holder qualify for a pension.
The pension is calculated based only on the pensionable portion of the Ministers’ monthly salary. Since 1994, this pensionable portion has been frozen. All subsequent salary increases since 1994 are non-pensionable. Annual salary components such as bonuses, allowances and other annual components are also not eligible for inclusion in calculating pension. The pension is paid on a monthly basis. There is no 13th month payment nor any other annual payment. Pensions are also counted into the total annual salary for benchmarking purposes.
A Minister qualifies for the maximum pension of 2/3 of this pensionable component of monthly salary only after having served as an office holder for 18 years. The maximum annual pension is about 11% of his annual salary prior to retirement. The pension will be less if he has served for a shorter period.
A worked example is provided below. Assume a Minister served as an office holder for 18 years and retired as a Minister at MR4.
Monthly salary of MR4: $59,760The maximum annual pension is about 11% of the 2010 annual package for MR4 ($1,583,900). A Minister at MR4 grade who serves less than 18 years will receive less, and the Minister will receive no pension if he serves less than 8 years.
Pensionable component of monthly salary: $22,067
Maximum annual pension: 2/3*$22,067*12 = $176,500 (rounded to nearest $100)
In terms of post-retirement medical benefits, Ministers who qualify for pensions will continue on the Medisave-cum-Subsidised Outpatient Scheme. They do not get free medical treatment after retirement.
3. What medical benefits do Ministers and Members of Parliament get?
3. What medical benefits do Ministers and Members of Parliament get?
Ministers and Members of Parliament (MPs) are on the Medisave-cum-Subsidised Outpatient (MSO) Scheme, like the majority of civil servants. Under this scheme, there are no hospitalisation benefits. Ministers / MPs receive 1% of salary (capped at $70 per month and at 17 months a year) paid into their Medisave account. Ministers / MPs can use this to buy health insurance plans like any other Singaporean.
Under the MSO scheme, outpatient subsidy is capped at $350 a year and they have to co-pay 15% of medical expenses at restructured hospitals. For dependants (i.e. spouses, and children up to 18 years old), a Minister / MP co-pays 40%. However, this is all subject to the total annual expenditure cap of $350. Any amount unused at the end of the year is put into the Minister / MP’s Medisave account. There are no extra benefits for them or their spouse/ children (below age 18 years). Their parents do not have medical benefits.
Under the MSO scheme, Ministers / MPs are reimbursed 50% of the dental expenses, up to a maximum subsidy of $70 per calendar year.
The GDP Bonus varies with the GDP growth rate.
Ministers can receive between 0 to 8 months of GDP Bonus for GDP growth of 2% to 10%. No bonus will be paid if GDP growth is 2% or less. The maximum 8 months will be paid when GDP growth is 10% or more. The bonus will vary linearly in between.
Members of Parliament can receive between 0 to 2 months of GDP Bonus for GDP growth of 2% to 8%. No bonus will be paid if GDP growth is 2% or less. The maximum 2 months will be paid when GDP growth is 8% or more. The bonus will vary linearly in between.
Members of Parliament do not receive Performance Bonus.
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