Revision needed to build first-rate team as salaries have fallen further behind those of private sector and civil service, says Prime Minister Lawrence Wong
By Lim Yan Liang, Deputy News Editor, The Straits Times, 9 Sep 2026
Political office-holders will get a one-off pay increase of up to 9 per cent, as the Government accepts the recommendations of a committee convened in December 2025 to review political salaries.
This means a minister at entry-level grade MR4 getting the full adjustment will see his annual pay rise from $1.1 million to $1.2 million when the revised framework takes effect from Oct 15.
Speaking in Parliament on Sept 8, Prime Minister Lawrence Wong said the Government has accepted the committee’s recommendation to update the MR4 benchmark from $1.1 million to $1.8 million.
The salary range for ministers will also be widened. Beyond the one-off increase, PM Wong said, ministers’ salaries will continue to be adjusted based on performance, and that he expects most MR4 ministers to earn about $1.35 million – the lower end of the new salary range – by the end of this term of government.
The Prime Minister said he decided to act now given that ministerial salaries have fallen further behind both private sector and civil service salaries in the last 15 years.
While the gap is most obvious when compared with the private sector, even in the public service there are some senior permanent secretaries who earn more than ministers, he said.
Emphasising that good government did not come naturally to Singapore but was built deliberately over many years, PM Wong said his responsibility is to sustain the capacity for the city-state to have leadership that can plan ahead, take difficult decisions and deliver.
“It’s not just about what we pay ministers today,” he said. “It’s about whether future prime ministers will continue to have a realistic chance of persuading capable Singaporeans – from the public service, the private sector and other walks of life – to step forward and build a first-rate team to serve Singapore and Singaporeans.”
Salaries for political office-holders were last updated in 2012, with the changes backdated to 2011 when the new term of government started. Since then, successive governments had decided to hold back on further changes because of reasons such as global instability, even though the salary framework remained relevant.
In 2017, a review committee recommended an upward adjustment, but the Government decided not to make any changes considering economic uncertainties.
The next review was scheduled for 2023, but was deferred.
“We cannot affirm a framework in principle but disregard it indefinitely in practice,” said PM Wong. “Otherwise, over time, the framework loses its meaning. Restraint cannot become neglect.”
While candidates looking to enter political service will still be expected to make a meaningful sacrifice, PM Wong said, the revised salary structure will give him more room to differentiate pay according to performance, and crucially to bring in people with substantial experience from outside the Government.
This includes those already earning significantly more in the private sector, he added.
Under the framework, ministerial salaries are benchmarked to the median income of the top 1,000 earners who are Singapore citizens, with a 40 per cent discount to reflect the ethos of political service.
The top 1,000 earners include people in senior management positions such as chief executives, chief operating officers and chief financial officers; people working in the financial services such as bankers, traders and asset managers; and professionals such as lawyers, doctors and accountants.
The median top 1,000 Singaporean earner now takes home slightly over $3 million a year, noted Coordinating Minister for Public Services Chan Chun Sing. The 40 per cent discount brings the updated MR4 reference annual salary to $1.8 million.
PM Wong said that the Government’s starting point is that good government depends on good leadership, and that institutions are only as effective as the people who lead them.
“Systems and processes matter. But they do not run themselves,” he said. “Especially at the top, the quality of leadership makes a decisive difference.”
Companies understand this very well, which is why boards spend so much time on succession planning, he noted.
PM Wong said he learnt this for himself when he was chief executive of the Energy Market Authority (EMA), and the authority was tasked with building the city-state’s liquefied natural gas (LNG) terminal. As no one in EMA had the experience to do this, he had to search widely. A candidate was eventually found, PM Wong said, but he had to offer a competitive package – far more than what he was earning as head of EMA – to bring him onboard.
“He proved his worth. He built up the LNG team from scratch, and delivered the LNG terminal safely – on time and within budget,” said PM Wong.
He noted that there are some who say ministers are different, given that the city-state already has a first-rate civil service.
But a strong civil service is no substitute for effective political leadership, said PM Wong. This is as ministers have to set the direction for their ministries, decide the priorities and make the strategic calls. “If those calls are wrong, even the best civil servants will struggle to deliver good outcomes,” he said. “They may execute well – but they will be executing in the wrong direction.”
There are also decisions that civil servants cannot and should not make, he added. These include how the costs of stronger social safety nets are shared among individuals, the community and the Government, as well as how much to tax today and how much to leave for future generations.
“These are not just technical questions. They involve choices about priorities, interests and values,” he said.
Citing the reset of family policies that he announced at the National Day Rally, PM Wong said that civil servants could review each scheme and propose improvements.
But it was political office-holders in the Marriage and Parenthood Reset Workgroup who looked at the parenthood journey as a whole and helped shape the overall package, which included decisions on where support would make the greatest difference and how the costs could be shared.
Hence, a minister needs to have the character and commitment to serve, but also competence – the judgment, ability and leadership to do the job well, said PM Wong.
“This is where remuneration becomes relevant,” he said. “It does not determine who is capable, but it does affect whether enough capable people are prepared to step forward and take on the responsibility.”
While the challenge of assembling the best possible team to lead the country is not one that is unique to the city-state, PM Wong said Singapore has been an exception in putting together strong and stable governments.
“We have sustained these standards for so long that they can start to feel normal to Singaporeans,” he said. “But they are not normal elsewhere – and they are certainly not guaranteed here either.”
This record of good government has been achieved through deliberate choices made over decades about how Singapore’s political system should work, and one of these choices was to deal with political remuneration openly.
“We recognise that highly able people have alternatives outside politics. So, we pay political office-holders salaries that are competitive, but with a substantial discount to reflect political service,” he said.
In return, Singaporeans rightly expect much from their political leaders, including high standards of integrity, competence, and ultimately accountability to voters at the ballot box. That same broad consideration applies to MPs, who carry substantial responsibilities in Parliament and in their constituencies, he added.
PM Wong said good leadership will be even more crucial as Singapore navigates a more uncertain and troubled world. “So, let us make the right decision – to keep the path open for capable and public-spirited Singaporeans to step forward, lead and serve,” he said.
Chan said in his ministerial statement that the Government also agreed to the regular and independent review of the salary framework every five years. Between reviews, and where justified, it may also make pay adjustments within the framework. This will be exercised with responsibility and restraint, he added.
Parliament will debate the Government’s response to the salary review on Sept 10. This will allow MPs some time to consider the two ministerial statements on the matter, said Chan.
Senior Minister Lee Hsien Loong said he strongly supported PM Wong’s decision to accept the salary review committee’s recommendations and to adjust political salaries. He called it a strategic move to enable the Republic to continue fielding the strongest possible leadership team.
“The cost to the country of mediocre leadership would be vastly greater than the cost of paying political leaders properly,” Lee wrote on Facebook. “This salary revision will help keep our country in good hands for years to come. I ask all Singaporeans to support it.”
Good government requires good leadership: PM Wong
By Tham Yuen-C, Senior Political Correspondent, The Straits Times, 9 Sep 2026
Good government depends on good leadership because institutions are only as effective as the people who lead them, said Prime Minister Lawrence Wong.
This is why it is important to attract people of integrity and competence so that they can set the direction, decide the priorities, and make the strategic calls for Singapore, he said.
To do this, it is important to acknowledge that remuneration is a factor, the Prime Minister said.
While politics must remain a calling to serve, “if the personal and financial sacrifices become too large, many capable people will simply choose to do something else”, he added.
He was speaking in Parliament on Sept 8 on the Government’s response to a long-deferred review of salaries for political appointment holders and Members of Parliament.
The review, which has been postponed several times since 2023, was completed in 2026, with PM Wong saying that the Government will accept the recommendations. He said: “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. It applies even more importantly to political office-holder salaries.”
In explaining the Government’s decision, he said building and renewing a strong political team takes sustained effort, and the review of salaries helps to ensure that Singapore’s system continues to give future prime ministers the best possible chance of assembling a good team.
This is important because the quality of leadership makes a decisive difference to organisations, he said.
Good ministers are needed to set the direction for their ministries, decide the priorities, and make the strategic calls, he said.
If these calls are wrong, even the best civil servants will struggle to deliver good outcomes, he added.
Addressing the notion that Singapore’s civil service can keep the system running even without good ministers, which opposition parties have brought up in the past, PM Wong said: “The idea that we can have less capable ministers sitting above a first-rate civil service, and everything will somehow continue to work, is a fantasy.”
A strong civil service is no substitute for effective political leaders, who have to make decisions that involve choices about priorities, interests and values, he said.
Over time, the quality of political leadership also affects the quality of the civil service itself, said PM Wong.
This has happened elsewhere, with countries once known for highly capable governments suffering a deterioration in their civil services when political leadership at the top weakened, he said.
Capable public officers want to work for leaders they respect and can learn from, who can understand the issues, ask the right questions, make sound judgments, and take responsibility for decisions, he said.
“If ministers consistently fall short, good officers will become frustrated. Many will leave. Some may stay on, but they will be less willing to contribute their best ideas or take on the toughest assignments,” he warned.
Why remuneration is important
In this regard, remuneration becomes relevant, said PM Wong.
It does not determine who is capable, but it affects whether enough capable people are prepared to step forward to take on the job, he said.
Emphasising that character is a very important “veto factor” in determining if someone can be a minister, he said: “If someone does not have the integrity, values and commitment to serve, then however capable he or she may be, that person should not be a minister.”
But character alone is not enough, and ministers also need the competence to have the judgment, ability and leadership to do the job well.
The PM noted that the job of a minister is demanding, even if some may think it is straightforward.
While it is often politically convenient to postpone difficult reforms, promise more benefits without being clear about who will pay for them, and avoid decisions that upset particular groups, the consequences of doing so will eventually catch up with citizens bearing the cost.
This is happening in many countries where government leaders know what needs to be done, but defer the decisions, he said.
As a tiny country, Singapore has less room than most countries to govern this way and cannot afford to let major problems fester for years before acting, he said.
He added that he was not suggesting that ministers always got every decision right.
“Ministers do make mistakes. Some will be stronger in certain areas than others. And when we fall short, we have to learn, improve and be accountable,” he said.
“But taken as a whole, I believe we have a strong team – as Singapore has had over successive generations. Our ministers are able to master their briefs, exercise judgment, hold their own, and earn the confidence and trust of Singaporeans. And where necessary, represent Singapore well on the international stage.”
A system that works
Noting that it is not easy to find people who are up to the job, and to have enough of them who are willing to step forward, PM Wong said the challenge is not unique to Singapore.
Different countries have tried to manage the challenge in different ways, he noted.
Some have kept political salaries low as it is a highly sensitive issue, but allow substantial benefits and privileges to accumulate around office, while others have allowed politicians to supplement their incomes through outside interests.
Even then, many countries still struggle to attract the people they need, and this is with much larger populations and talent pools to draw from, he added.
Singapore, which consistently ranks among the leading countries in the world for government effectiveness, integrity and the quality of its public institutions, has been an exception, said PM Wong.
He said: “I meet many people around the world who study governments and public policy. Again and again, they point to Singapore as a model of effective government, and an inspiration for others.”
While these standards have been sustained for so long that they feel normal to Singaporeans, they are not guaranteed, he said.
In fact, this record of good government is possible because of the deliberate choices made over many decades, such as by dealing with political remuneration openly, he said.
This includes paying political office-holders competitive salaries, but with a substantial discount to reflect political service, and making sure the remuneration is transparent with no hidden components or perks outside the published framework.
In return, Singaporeans rightly expect high standards of integrity, conduct, competence, as well as responsibility and accountability at the ballot box from their political leaders, he said.
He added that the same broad consideration applies to MPs, who get a substantial allowance because they carry substantial responsibilities in Parliament and in their constituencies.
“We have to keep bringing in capable Singaporeans from different backgrounds, election after election,” he said.
“Enough of them must be prepared to step forward, contest elections, and take responsibility for the future of our country.”
Attracting capable Singaporeans to politics becoming harder, says PM Wong
Leadership renewal a top priority; securing private-sector leaders getting tougher
By Nadine Chua, Correspondent, The Straits Times, 9 Sep 2026
Leadership renewal is one of the top priorities for Prime Minister Lawrence Wong, as he saw first-hand how hard it was for his predecessor to bring private-sector leaders into the Cabinet.
Having worked with Senior Minister Lee Hsien Loong since 2004, PM Wong watched the difficult process of identifying and persuading new political candidates.
“It was one reason I agreed to enter politics when he approached me in 2011,” PM Wong said in Parliament on Sept 8.
Now, PM Wong must build the next team himself.
Ahead of the 2025 General Election, he asked several senior permanent secretaries to enter politics because he believed they had strong political leadership potential and could have taken on major portfolios more quickly given their experience. But none of them agreed to make the move.
He managed to bring in younger officers. They are Transport Minister Jeffrey Siow, Minister for Culture, Community and Youth David Neo and Acting Minister for Manpower Jasmin Lau.
Before entering politics, Siow was second permanent secretary at the Ministry of Manpower and the Ministry of Trade and Industry. Neo was chief of army, while Lau served as deputy secretary (policy) at the Ministry of Health.
Even though these new political office-holders have strong potential with a long runway, PM Wong said that there is still much more to do in terms of leadership renewal.
He cited how three key ministries are helmed by senior political office-holders who will be aged 70 or older by the next term of government – Gan Kim Yong, K. Shanmugam and Vivian Balakrishnan.
In his ministerial statement on the Government’s response to a committee’s review of political salaries, PM Wong said attracting capable Singaporeans into politics will not become easier.
He would like to attract new political leaders with valuable private-sector experience, and said remuneration should not be an unnecessary hurdle.
“It’s a challenge I face today. And future prime ministers may find it harder still,” said PM Wong, in announcing that the Government has accepted the committee’s proposals to increase the salaries of Singapore’s political appointment holders, including all ministers’ and the prime minister’s.
PM Wong, who is also Finance Minister, said recruiting from the public service is becoming harder.
He noted that senior civil servants today have meaningful careers, substantial responsibilities and competitive remuneration. Entering politics would mean giving up that career path, and taking on electoral and public scrutiny.
“If the gap between public service and political salaries continues to widen, that hurdle will become higher,” said PM Wong.
The challenge is greater still in the private sector, he added.
This matters as Singapore cannot build its political leadership from the public service alone, he said. “I want people in Cabinet who have spent substantial parts of their careers in business or other professional fields – especially in running large organisations and overseeing complex systems.
“They may not start with the same familiarity with Government. But they bring experience of making hard decisions, managing people and resources, operating under commercial pressure, and delivering results in a competitive environment.”
He cited Minister for Trade and Industry (Energy and Industry) Tan See Leng, who joined politics in 2020 after a long career in the private sector, and “has made a real contribution to the team”.
“At the last Parliament sitting, he spoke with authority about the challenges entrepreneurs face and what more we can do to support them. He did so with conviction, drawing on years of experience running businesses and dealing with these pressures faced first-hand,” said PM Wong, referencing Tan’s speech during the debate on a Workers’ Party motion about Singapore’s economic strategy.
“So, that gave his speech a conviction that would have been difficult for others in the team to replicate.”
PM Wong said he would like to bring in more people like Tan, with them ideally coming in while they are in their 40s so they have the runway to learn and take on larger responsibilities over time.
PM Wong asked the House to consider chief executives of major listed Singapore firms in banking, telecommunications, aviation, engineering and other sectors, as well as those on track for such leadership roles.
“At those levels, remuneration can run into several million dollars a year – well above even the revised MR4 benchmark. We are not trying to match what they earn. We never will,” he said.
MR4 is the entry-level grade for a minister. Currently, a minister at the MR4 grade earns an annual salary of $1.1 million, including bonuses. But this will be revised to $1.8 million from Oct 15.
PM Wong said when the Government approaches people of that calibre, they cannot pretend that the opportunity cost does not exist.
Before the last general election, PM Wong spoke to several chief executives and other senior business leaders who were earning several times a minister’s salary, and whom he thought could make a real contribution.
“None said to me directly that pay was the reason they would not join. Nor would I want someone whose decision turned mainly on money,” he added. “But that does not mean remuneration is irrelevant. Look at the decision from their point of view.”
PM Wong said they would be asking these individuals to walk away from a successful career they spent years building. They would also be taking a substantial reduction in income, contesting an election with no certainty of success, and starting again in a completely different environment, he added.
“In the end, none of those I approached was prepared to make the move. But I have not given up. I am still looking, and I hope to persuade a few to join us in the next election,” said the PM.
He recognised that the sacrifice is not only financial, as political life places real demands on the individual’s family.
“There is time we do not get back. There is scrutiny that spouses and children did not ask for, but nevertheless have to bear with us. No salary adjustment can make up for these things. Nor was it ever meant to,” said PM Wong.
Noting that the salary increase will be debated in Parliament on Sept 10, PM Wong said: “It’s not just about what we pay ministers today.
“It’s about whether future prime ministers will continue to have a realistic chance of persuading capable Singaporeans – from the public service, the private sector and other walks of life – to step forward and build a first-rate team to serve Singapore and Singaporeans.”
DPM Gan, Shanmugam and Vivian not easy to replace in Cabinet: PM Wong
By Ng Keng Gene, Correspondent, The Straits Times, 9 Sep 2026
The challenge of finding the next generation of leaders in Singapore to helm key ministries is “very real”, Prime Minister Lawrence Wong said in Parliament on Sept 8.
He identified Gan Kim Yong, K. Shanmugam and Vivian Balakrishnan as the three most senior members of his team aside from Senior Minister Lee Hsien Loong, noting that the trio will be aged 70 and older by the next term of government.
“We should not plan on the basis that they will continue helming (their) ministries then,” PM Wong said.
Deputy Prime Minister Gan, who is also Minister for Trade and Industry (Trade), is 67.
Senior Minister Shanmugam, 67, is also Coordinating Minister for National Security and Minister for Home Affairs.
Balakrishnan, the Foreign Minister, is 65.
PM Wong added that the Ministry of Finance (MOF), which he currently leads, should also have someone new at the helm.
“For the good of the team, and for the strength of our institutions, we need the next generation to take over,” he said in a speech addressing the Government’s response to the latest review of salaries for political appointment holders and MPs.
“All three (of them) understand this, and in fact they have been pressing me to put succession plans in place.”
PM Wong pointed to Gan’s experience across both the private and public sectors, adding that the DPM “commands the confidence of investors and international partners”.
Gan had started his career with the civil service, serving stints at the Ministry of Trade and Industry (MTI) and the Ministry of Home Affairs (MHA).
In 1989, he joined the private sector to work for NatSteel, where he rose through the ranks and in 2005 became the company’s chief executive and president. He has been the Minister for Trade and Industry since May 2021.
Speaking of Shanmugam, PM Wong cited his decades of experience in law and government, noting that he has “an unusual ability to get to the heart of complex issues, weigh competing considerations and frame the choices clearly”.
“Few ministers have that combination of judgment and experience at the same level,” said the Prime Minister.
Shanmugam was in 1998 appointed Senior Counsel of the Supreme Court of Singapore at the age of 38, becoming one of the youngest lawyers to be appointed to the role at the time.
Since being appointed to the Cabinet in 2008, he has served as the minister for law and foreign affairs, as well as for MHA, which he has been helming from 2015.
Finally, PM Wong said Balakrishnan has been foreign minister for more than a decade and has built up “deep knowledge of the issues and an extensive network of relationships”.
“That experience matters greatly, especially as our external environment becomes more complicated,” he said.
Balakrishnan, who joined politics in 2001, is an ophthalmologist by training and was previously the chief executive of Singapore General Hospital.
“It is very hard to find complete ready-made replacements for ministers at this level,” PM Wong said of Gan, Shanmugam and Balakrishnan.
“A senior person would have a shorter learning curve. But the judgment, experience, political authority and relationships needed for these roles take time to build.”
Hence, “good people” need to be brought into politics early enough, so they have the time to progressively assume heavier responsibilities, before taking over ministries.
“We are doing that now. But we also need depth in the pipeline because not everyone we bring in will necessarily grow into these roles,” PM Wong said.
At MOF, he is facing the same need for someone to succeed him as Finance Minister, a role he has been able to take on as he is familiar with the ministry’s work after having worked many years there as a civil servant.
“For now, I can continue to double-hat as PM and Minister for Finance,” he said.
“But ideally, I should have someone take on the Finance portfolio.
“So, when I look at MOF, MTI, MHA and MFA (Ministry of Foreign Affairs), the succession challenge is very real,” he added.
PM Wong to donate full pay increase for next 5 years to charity
By Wong Yang, The Straits Times, 9 Sep 2026
Prime Minister Lawrence Wong will donate his full salary increase to good causes for the next five years to demonstrate his commitment to the idea that revised political salaries are in Singapore’s interests.
“The Government will continue to pay me the salary provided for under the framework, which is how our system works. I will then donate the increase to suitable good causes,” PM Wong said in Parliament on Sept 8. This is assuming he remains PM.
He said this while announcing that the Government has accepted the proposals by a review committee to increase the salaries of Singapore’s political appointment holders, including all ministers and the prime minister.
Specifically, the prime minister’s annual salary will go up from $2.2 million to $3.6 million, including bonuses. This means he will be donating $1.4 million each year.
The prime minister’s salary will continue to be set at twice the benchmark of an entry-level minister, which will be revised to $1.8 million, up from $1.1 million currently.
As there is no one to assess the prime minister’s performance annually, he does not receive a performance bonus and gets only the national bonus.
PM Wong added that he does not expect other political office-holders to donate their salary increase.
“As a general rule, I do not believe in making a public show of charitable giving. But although the salary framework is a Cabinet decision, as Prime Minister, I carry ultimate responsibility for it,” he said.
“So, I want to be clear about how I will personally handle the increase and why I am taking these changes forward because I believe they are in Singapore’s interest.”
PM Wong said he will review his position at the end of the five years, and will consider the circumstances at that time.
This is because although he fully expects to continue supporting good causes, he does not want to make an open-ended public commitment, or to create an expectation that future prime ministers may feel obliged to follow.
PM Wong’s move follows the decision by his predecessor, Senior Minister Lee Hsien Loong, in 2007 to donate five years of his salary increments to charity.
Under changes to the salaries of civil servants and ministers announced in 2007, Lee’s annual salary as PM went up from $2.5 million to $3.1 million. This was later adjusted to $2.2 million in 2012.
Lee said in 2007 that he had decided to donate his salary increase to make it clear that the Government is making the changes for the future good of Singapore, and to give him the “moral standing” to defend the policy with Singaporeans.
From 2007 to 2012, Lee donated his pay increase to various beneficiaries, including community hospitals, nursing homes, voluntary welfare organisations, and sports and cultural bodies.
The money also helped establish an education endowment fund for students who have persevered and excelled, academically and otherwise.
Another $350,000 donation by Lee went to three new awards to promote community bonding, encourage Singaporeans to pursue careers in social service, and recognise young talent in the arts.
Lee spent two decades as prime minister, between 2004 and 2024.
More recently, WP chief Pritam Singh said in 2020 that he would donate half of his pay increase as Leader of the Opposition (LO) to his party, residents and charities.
Singh was designated LO in 2020 after the general election that year.
He was removed from the post by PM Wong in January 2026 after a parliamentary motion found him unsuitable to stay on as LO, following his conviction for lying to a parliamentary committee.
Delaying political pay updates will weaken ability to build strong leadership team: Chan Chun Sing
Updating salary framework vital to attract capable and committed people, he stresses
By Wong Pei Ting, Correspondent, The Straits Times, 9 Sep 2026
The updated political salary framework is calibrated to widen the pool of Singaporeans who can realistically consider serving, while preserving the ethos of political service, said Coordinating Minister for Public Services Chan Chun Sing.
In implementing it, the Government wants to be able to send a message to capable Singaporeans considering joining political office that “while political service involves sacrifice, it will not come at an unreasonable cost to you and your family”, he added.
In laying out the slew of changes to come with the latest review, Chan, who is also Defence Minister, said continuing to hold off updates could cause the framework to lose relevance. “More importantly, we continue to weaken our ability to build a strong, diverse team of leaders that Singapore needs,” he added in a ministerial statement on Sept 8.
The salary framework needs to stay updated so that capable and committed people can step forward to serve, “not just the financially independent ones or those who have made exceptional lifestyle choices”, he stressed.
That includes younger Singaporeans in their 30s and 40s, who may be building their careers, raising families, and taking on major financial commitments, said Chan.
“We want such people to be able to enter public office in their prime – with the energy and runway to build up the experience, judgment to make tough decisions, and to bond and build up the trust with Singaporeans to take Singapore forward, especially in difficult times,” he said.
This also includes those who are more established in their careers, especially in the private sector, he said, noting that some chief executives of major Singapore companies earn $6 million or $7 million a year, and sometimes more.
“We are not trying to match that. Nor should we,” Chan said. “But we cannot pretend that such opportunity costs do not exist.”
Money, however, must never be the primary motivation for anyone who enters political service, said Chan. “If money is your main reason for wanting to be a minister, frankly, you are not the person we are looking for,” he added.
The eight-member independent committee to review political salaries was convened in December 2025.
He added that he agrees with the committee’s assessment that the three core principles that underpinned the political salary framework remain sound and necessary to build a strong, sustained political core.
The three Cs – calibre, commitment and clean – were established by the 2012 committee led by social service veteran Gerard Ee.
In adhering to calibre, the framework should take reference from market benchmarks to ensure individuals of the right calibre are not deterred from stepping forward to lead the country, Chan said.
Commitment ensures that the framework includes a meaningful discount relative to market benchmarks to reflect the ethos of political service, he said. The discount was set at 40 per cent off the market benchmark, and the latest review kept it at the same level.
On keeping the framework “clean”, Chan said the framework should ensure a “clean wage” with no hidden perks, as he said transparency and integrity in remuneration remain fundamental to maintaining public trust.
The salary review is fundamentally about “giving ourselves a better chance to build a first-rate team to serve Singapore and Singaporeans”, Chan said.
National Bonus targets for political appointment holders tightened
By Wong Pei Ting, The Straits Times, 9 Sep 2026
Several performance targets used to determine the National Bonus component of ministers’ pay will be tightened, as part of changes to the political salary framework.
Coordinating Minister for Public Services Chan Chun Sing on Sept 8 set out the Government’s response to the recommendations made by a committee reviewing the salaries of political appointment holders and MPs.
Besides making the changes to the National Bonus, he said the salary range will be widened to cater to people joining political service at different stages of their careers.
The grade structure will also be streamlined for simplicity.
The National Bonus, which ranges from zero to six months of salary, is part of the variable component of ministers’ pay and is linked to four national indicators.
The four are unemployment rate, real income growth for the 20th-percentile Singaporean earner and for the median Singapore citizen, as well as real gross domestic product (GDP) growth.
The Government will tighten the targets for the three socioeconomic indicators, Chan said.
For unemployment rate, the target band will be tightened from the current 4 per cent to below 4.5 per cent, to 3 per cent to below 3.5 per cent – a tightening of 1 percentage point.
The target for real income growth of the median Singapore citizen will be raised from 2 per cent to below 3 per cent, to 2.5 per cent to below 3.5 per cent.
For the 20th-percentile Singaporean earner, the target will be raised from 2 per cent to below 3 per cent, to 3 per cent to below 4 per cent.
The target band for real GDP growth will be updated, from 3 per cent to 5 per cent, to 2 per cent to 4 per cent.
Chan said the GDP target is calibrated to Singapore’s longer-term growth potential rather than the unusually strong performance of recent years.
Over the past decade, Singapore’s average real GDP growth was about 2.6 per cent, he said. The Ministry of Trade and Industry (MTI) has upgraded its growth forecast for 2026 to 4.5 per cent to 5.5 per cent, reflecting the strong performance of the economy.
But looking ahead, MTI expects real GDP growth to be around 2 per cent to 3 per cent a year over the next decade as Singapore’s economy matures, with an ageing population and slower workforce growth.
“Our responsibility is to set targets that are ambitious, credible and sustainable,” Chan said.
The Government has also agreed to explore including a robust Quality of Life measure in the National Bonus framework once such a measure becomes available, he said.
Salary benchmark
Separately, the Government has accepted the committee’s proposal to raise the norm annual salary for the base MR4 ministerial grade, including bonuses, from $1.1 million to $1.8 million.
While the increase seems significant, this is because the level has not been updated for 15 years, Chan said.
Averaged across the period from 2011 to 2025, the adjustment works out to about 3.6 per cent per year, which is lower than the wage growth over the same period experienced by Singaporeans, he said.
Wage growth among Singaporeans over the period is about 4.3 per cent annually for the median earner, and 4.6 per cent for the lower-income earner at the 20th percentile.
The new reference norm annual salary continues to incorporate a 40 per cent discount off the median income of the top 1,000 earners who are Singapore citizens.
Chan said this was a “deliberate reduction” that reflects the ethos and sacrifice expected of political service.
“Without that discount, the reference for the median 1,000 Singaporean earner would be slightly above $3 million,” he added.
Chan noted that over the same period, the Civil Service pay has been adjusted thrice – in 2014, 2022 and August 2026 – in quantums ranging from 2 per cent to 14 per cent to close market gaps.
He also acknowledged that no formula will be perfect or able to satisfy everyone.
Noting that there is no universally ideal benchmark, Chan said: “The key question is this: What is a workable framework and range of figures that allow the prime minister, any prime minister, to reasonably assemble a team that Singapore deserves?”
In the 27-page report released on Sept 8, the salary review committee stated that the median income rate was picked over the average income rate so the benchmark is more stable and not skewed upwards by outliers.
Wider salary ranges and merged grades
Chan also announced the Government will simplify the grade structure by merging grades with fewer appointment holders, while using wider salary ranges to give greater flexibility in remuneration.
Currently, a new minister is appointed at the MR4 grade, and could be promoted to the more senior grades of MR3, MR2 or MR1 down the road.
Under the changes, the MR2 and MR3 grades will be combined into a single grade pegged at 1.3 times the MR4 reference salary, which is the midpoint between the current 1.2 and 1.4 times.
Chan said the Government will also widen salary ranges for political appointment holders. For ministers, the range will be 75 per cent to 125 per cent of the reference benchmark.
The wider range will give the Prime Minister greater flexibility to account for the different backgrounds and career stages of people entering political service, Chan said.
“The individual is still likely to have to take a pay cut to enter political service, but the wider range will help make the pay cut less steep,” Chan said.
Portions of the framework that stay unchanged include salary pegs for statutory appointment holders such as the President, Speaker and Deputy Speaker.
This means the President’s monthly salary will continue to be pegged to the Prime Minister’s monthly salary. The Speaker’s salary remains pegged at 50 per cent of the MR4 reference salary, while the Deputy Speaker’s is pegged at 15 per cent of the Speaker’s salary.
The current practice of paying all political appointment holders one salary package, even if they hold multiple appointments or portfolios, would also remain.
MPs’ monthly allowances to be raised to $18,500 from $13,750
By Ng Keng Gene, The Straits Times, 9 Sep 2026
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.
What are the key changes to political salaries? How are they calculated?
By Chin Soo Fang, Senior Correspondent, The Straits Times, 9 Sep 2026
The Government will adopt the recommendations of an independent review committee to adjust political salaries, including those of ministers.
Prime Minister Lawrence Wong and Coordinating Minister for Public Services Chan Chun Sing provided the Government’s response to the recommendations in Parliament on Sept 8. The House will debate the matter on Sept 10.
The Straits Times explains the key salary revisions, how they are determined, and what they mean for political office-holders.
1. What are the key changes to political salaries?
Existing political appointment holders will receive a one-off adjustment of up to 9 per cent from Oct 15, depending on individual circumstances including performance. Any subsequent changes will be based on individual performance and responsibilities.
Ministers
The committee has recommended updating the Ministerial Grade 4 (MR4) benchmark from $1.1 million to $1.8 million.
While the Government accepts the committee’s recommendation to update the reference salary for the MR4 benchmark, PM Wong has decided not to move existing political appointment holders immediately to the updated benchmark.
Instead, existing political appointment holders will receive a one-off adjustment of up to 9 per cent from Oct 15, depending on individual circumstances, including performance.
This means a minister receiving a $1.1 million annual salary may receive an increment of almost $100,000, bringing his annual salary to around $1.2 million. Beyond this one-off adjustment, any subsequent changes will be based on individual performance and responsibilities.
The revised MR4 benchmark of $1.8 million is not a target salary that every minister must eventually reach, as he or she can be paid above or below the benchmark, within a prescribed range.
PM Wong expects most ministers who remain at MR4 to be at the lower end of the new salary range – about $1.35 million – by the end of this term of government, which began in 2025. Each term typically lasts about five years.
At present, 10 out of 16 ministers are at MR4. The other six are at higher grades, reflecting their seniority and heavier responsibilities, including those serving as coordinating ministers.
Chan said that the adjustment works out to be about 3.6 per cent per year. This is because the MR4 reference has not been updated for 15 years.
The Government also accepts the committee’s recommendation to widen the monthly salary range for each grade.
For ministers, the salary range will be 75 per cent to 125 per cent of the reference salary at each grade. This is in line with market practice, where ranges are generally wider. It also gives greater room to cater for people joining political service from different backgrounds and at different stages of their careers.
The committee has also recommended combining the MR2 and MR3 grades. This means there will be three ministerial grades instead of four. The salary range for each grade will also be widened to plus or minus 25 per cent.
The grades for mayors, senior parliamentary secretaries and parliamentary secretaries will also be merged for simplicity. The salary range will be wider, at 70 per cent to 130 per cent of the reference salary at the merged grade.
Prime Minister, Deputy Prime Minister, President, Speaker and Deputy Speaker
PM’s salary is set at twice the MR4 benchmark. His pay will increase from $2.2 million to $3.6 million. PM Wong has decided that for the next five years, he will donate the full increase in his salary – amounting to some $1.4 million yearly – arising from this adjustment.
The Deputy PM’s pay will increase from about $1.8 million to $3 million.
The President’s salary will be raised from about $1.5 million to $2.5 million.
The Speaker’s salary will also continue to be pegged at 50 per cent of the MR4 minister reference salary. It will go up from $550,000 to $900,000 annually.
The Deputy Speaker’s annual package will remain pegged at 15 per cent of the Speaker’s salary. It will be raised from $82,500 to $135,000 yearly.
Beyond this adjustment, the committee had recommended studying the peg for Speaker and Deputy Speaker, taking into account how their roles and responsibilities may have evolved over time.
MPs, NCMPs and NMPs
The monthly allowances for MPs will increase from $13,750 to $18,500 to account for inflation.
The allowance of Non-Constituency MPs (NCMPs) will be increased from 15 per cent of an MP’s annual allowance to 30 per cent. This translates to $5,550 monthly. This takes into account full voting rights for NCMPs since 2017, and brings the allowance into better alignment with their parliamentary responsibilities.
Nominated MPs’ allowances will continue to be pegged at 15 per cent of the MP’s allowance, which is an updated annual allowance of $38,900.
2. Who reviews the political salaries?
The Government appointed an independent committee to review the political salary framework in December 2025.
The eight-person committee tasked with the current review is chaired by Gan Seow Kee, chairman of the Singapore LNG Corporation and an alternate member of the Council of Presidential Advisers. The committee comprises seven other members from across the private and people sectors.
The committee also engaged Mercer, a leading global HR consultant, for technical expertise and to provide additional information on pay practices and levels.
It has affirmed that the framework remains sound, while updating its parameters and recommending some refinements.
3. How are political salaries calculated?
Ministerial salaries are benchmarked to the median income of the top 1,000 earners who are Singapore citizens, with a 40 per cent discount to reflect the ethos of public service.
The top 1,000 earners include those in senior management positions such as chief executives, chief operating officers and chief financial officers; people working in the financial services; and professionals like lawyers, doctors and accountants.
The salary paid to political appointment holders comprises both fixed and variable pay components. About 65 per cent of the annual MR4 reference salary is fixed, and the remaining 35 per cent is variable.
The variable pay components, which form part of the total annual salary, are paid depending on both individual performance, as well as national outcomes achieved based on a National Bonus framework.
The National Bonus is based on four equally weighted socio-economic indicators: the real median income growth rate of the average Singaporean, real income growth rate of the lowest 20th percentile of Singaporean income earners, unemployment rate of Singaporeans and real gross domestic product growth rate.
The Government has accepted the committee’s recommendations to update the targets for the National Bonus indicators to tighten focus on Singapore’s socio-economic priorities and reflect the Republic’s maturing economy. The updated targets will be effected on Jan 1, 2027.
It has also agreed to explore the inclusion of a robust Quality of Life measure in the National Bonus framework when this becomes available, as the committee had suggested.
4. What are the core principles of the salary framework?
These are calibre, commitment and a clean wage.
The first ensures that the salary framework takes reference from market benchmarks, and individuals of the right calibre are not deterred from stepping forward to lead the country.
Commitment is reflected in the discount (now pegged at 40 per cent) relative to market benchmarks to reflect the ethos of political service.
A clean wage means no hidden perks, as transparency and integrity in remuneration remain fundamental to maintaining public trust.
In addition, the Government affirms that salaries should be clearly linked to both individual and collective performance, based on outcomes that matter to Singaporeans and reflect socio-economic progress.
5. How much will multiple appointment holders earn?
All political appointment holders will get only one salary package, even if they hold two or more appointments or portfolios.
Said Chan, who is also Defence Minister: “The principle is simple – one person, one salary. Holding more portfolios does not mean receiving more pay.”
6. How much will these recommended changes cost the Government?
It will cost about $5 million more annually, if the maximum of 9 per cent is applied to all the political appointment holders, and about $6.6 million more annually for the MPs.
7. When were the ministerial salaries last adjusted?
The structure of political salaries has been frozen for 15 years.
The current salary framework was established in 2012, when the Government accepted the recommendations of the committee led by Gerard Ee. The recommendations were implemented retrospectively from May 2011, when the Government of the day took office.
Since then, the political reference salaries have not been updated. In 2017, the Government decided not to proceed with adjustments after an independent review because of prevailing economic circumstances.
It further held back a review in 2023, citing more pressing issues that it had to deal with. These included a more uncertain geopolitical situation with conflicts in the Middle East and Ukraine, heightened political contestation, and significant uncertainties in the global economy.
8. Why is there a need for the salary revision now?
The revision will give the Government a better chance of building a capable and committed political leadership to meet the long-term needs of Singapore.
PM Wong said good leadership is even more crucial as Singapore navigates a more uncertain and troubled world.
The salary revision will give him 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.
“We will still expect them to make a meaningful sacrifice to enter political service. But we should not make that gap larger than it needs to be,” he added.
He noted that ministerial salaries have fallen behind as salaries elsewhere have been adjusted.
“The gap is most obvious when compared with the private sector. But even in the public service, some senior permanent secretaries earn more than ministers.”
Chan said the review is fundamentally about giving Singapore a better chance to build a first-rate team to serve Singapore and Singaporeans. “So, we want to be able to say to capable Singaporeans, ‘Singapore needs you, and while political service involves sacrifice, it will not come at an unreasonable cost to you and your family’.”
Related
No comments:
Post a Comment