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GE2020: Here’s How Much Singapore Members Of Parliament (MP) Will Be Receiving In Allowance If Elected

Here’s what at stake (financially) for the candidates.

Held amid a pandemic, General Election 2020  is shaping up to be a historic one, with all 93 seats being contested by new parties, new faces, as well as familiar ones.

If elected, Members of Parliament (MPs) will have the opportunity to serve their constituents, as well as represent them in Parliament, with voting and debating privileges on issues that will affect Singapore.

For their efforts, MPs are paid an allowance, which can be quite substantial, especially when viewed over an entire 4 to 5 year term. Here’s a look at how much MPs, Non-Constituency MPs (NCMPs), and Nominated MPs (NMPs) are given in allowances and how this amount is set.

How Is MP Allowance Calculated?

The White Paper titled “Salaries for a Capable and Committed Government” of 2012 outlines the framework that the Singapore Government uses to set allowances for both Ministers and Members of Parliament. After consulting current and past MPs, the public and various civic groups, the paper set the guidelines for the allowance of Members of Parliament till today.

The introduction of the framework had an effect of reducing MPs allowance that year by 3%, as compared to the previous formula, which has a GDP bonus component.

The allowance Members of Parliament receive today is divided into three parts: a monthly allowance, a 13-month bonus and an Annual Variable Component (AVC). Elected  MPs’ allowance is pegged at 17.5% of the MR4 Benchmark of Ministerial pay, which is $1.1 million this year. This is assuming one month of AVC, good performance for the Individual Performance Bonus and met targets for the National Bonus.

MPs today do not receive pension, and MPs elected before 1995 who were eligible for a pension had their pensions frozen as of 20 May 2011. They would receive the frozen pension once they step down as a Member of Parliament.=

Read Also: How Much Can Each Candidate Spend On The Singapore General Elections

How Much Allowance Elected Members Of Parliament Receive

Members of Parliament (MPs) are paid an allowance as compensation for the time and expenses incurred while serving as an MP. This includes the dual roles that MPs play, a community role in which they serve their constituents and raise any concerns, as well as their Parliamentary legislative role in which they decide on governmental and legislative matters.

Currently, as of 30 June 2020, Members of Parliament would be receiving an annual MP allowance of $192,500. The allowance includes the monthly allowance, a 13-month bonus and an Annual Variable Component (AVC). This works out to be $16,041 a month.

Do note that MPs who are also Ministers also receive MP allowance, on top of their ministerial salaries. Furthermore, MPs are allowed to hold full-time jobs and directorships while being an MP.

Read Also Here’s How Much Singapore’s President And Cabinet Ministers Are Paid In Salary

Allowances Of Non-Constituency Members of Parliament (NCMPs) And Nominated Members (NMPs)

NCMPs and NMPs have a lesser salary, with their allowance pegged at 15% of an MP’s annual allowance. This is as they serve smaller roles than MPs, with NCMPs not having a community role due to having no constituents. NMPs also have a reduced legislative role, due to them not being able to vote for legislative issues such as government budgets and constitutional changes.

As such, NCMPs and NMPs receive $28,900 annually, which works out to $2,408 a month. Their allowances are structured in the same way as elected MPs, and thus there was a drop in allowance around 4%, due to the removal of the GDP bonus.

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