Once elected, Members of Parliament (MPs) 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 paid in allowances and how this amount is set.
Guiding Principles For Determining Political Officeholders’ Salaries
Singapore adopts a transparent and accountable approach to setting political officeholders’ salaries. These are paid as clean wages – fully accounted for, without hidden perks or privileges – and set competitive levels. This contrasts with systems in other countries, where lower base salaries are often supplemented by generous allowances, benefits and perks.
While competitive salaries are necessary to attract the people of the right calibre to serve the nation – reflecting their time commitment, and opportunity cost in the private sector – monetary gain should never be the main motivation for entering politics. Political service is a calling and a privilege, and those who step forward must be driven by a strong sense of duty and commitment to serve the nation and contribute to the public good.
As such, salaries for officeholders are reviewed from time to time to ensure they remain aligned with prevailing economic, social and political considerations.
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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.
This salary framework for political appointment holders is to be reviewed every five years. The last review in 2017 affirmed that salary benchmarks in place continue to be relevant. The next political salaries review was slated to be carried out in 2023 but was deferred due to the uncertain geopolitical environment.
The introduction of the framework had an effect of reducing MPs allowance that year by 3%, as compared to the previous formula, which had 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). The allowance for Elected MPs is pegged at 17.5% of the MR4 Benchmark of Ministerial pay, which is $1.1 million. 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 (MP).
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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, Members of Parliament can receive 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.
MPs who are also Ministers will continue to receive their MP allowance, on top of their ministerial salaries. Furthermore, MPs are allowed to hold full-time jobs and directorships while being an MP.
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Allowances Of Non-Constituency Members of Parliament (NCMPs) And Nominated Members (NMPs)
NCMPs and NMPs are given a lower allowance, pegged at 15% of an MP’s annual allowance. This is as they serve smaller roles compare to 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.
How Much The Speaker Of Parliament Is Paid
An MP who is elected to be Speaker of Parliament will also receive an annual salary on top of their MP allowance. This is the same for MPs who also have political appointments.
Currently, the salary of a full-time Speaker is also pegged to the MR4 benchmark. This is structured as a 14-month package, including the 13th month bonus and Annual Variable Component (AVC), but excluding the Performance Bonus and National Bonus. The allowance of a full Deputy Speaker is pegged to 15% of a full-time Speaker’s allowance.
Currently, parliament applies a 50% discount to the allowance of both positions as they are not full-time positions. This means the Speaker’s annual salary package is $550,000, while the Deputy Speaker gets $82,500 – representing reductions of 53% and 15% respectively from the previous formula.
Similarly, the pension scheme has been removed for the Speaker. The Speaker and Deputy Speaker are also on the MediSave-cum-Subsidised Outpatient (MSO) scheme and receive no perks. The Speaker is accorded the use of an official car that is subject to tax.
