After Tharman Shanmugaratnam was sworn in as Singapore’s ninth President on 14 September 2023, another major change in the nation’s top political leadership is set to take place. Following the 2025 General Elections, a new cabinet ministers led by Prime Minister Lawrence Wong was announced ahead of the opening of the 15th Parliament.
In Singapore, a President holds office for a term of six years from the date of appointment. They are to represent Singapore as the Head of State in ceremonies both domestically and internationally. Furthermore, a president is responsible for safeguarding the national reserves and the integrity of the public service, among other duties.
While the Prime Minister, who is appointed by the President of Singapore, is the effective head of the executive branch of the government and holds office for a term of 5 years. The Prime Minister chairs the Cabinet, which is the central decision-making body of the executive government. Additionally, the Prime Minister also oversees the government’s general policy direction.
While an elected candidate is expected to serve this esteemed role in the spirit of public service, they are also paid a salary in proportion to the heavy responsibilities they bear.
Here’s a quick look at how much our top leaders are paid.
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Who Sets The Pay For The Singapore President, Prime Minister And Cabinet Ministers?
The short answer is that the Singapore Parliament, which consists of elected representatives of the people, reviews and passes into law the framework that is used to determine the salaries of the nation’s highest political officeholders, namely the President, Prime Minister, and other Cabinet ministers.
The salary framework has been revised over the years to ensure that the both the principles and outcomes that Singapore believes in are reflected in ministers’ salaries.
Before 1994, the government set ministerial salaries through informal comparisons with the private sector, with periodic salary revisions. It was in 1994 that the government introduced the first benchmark that pegged ministerial salaries to alternative professions a minister could have pursued, with a significant discount to reflect the sacrifice that political service entails. In 2000, this benchmark was refined, and in 2007, another salary revision was made with, which included the imputed value of pensions.
The current ministerial pay salary is set out in the White Paper titled “Salaries for a Capable and Committed Government”, which was presented and approved by the Parliament in 2012, and currently used as the basis for setting salaries.
This White Paper was the work of a committee convened by Prime Minister Lee Hsien Loong after the 2011 General Elections, who acknowledged that Singaporeans had genuine concerns over the (high) salaries of their leaders.
The committee worked over months in consultation with Members of Parliament (MPs), the public, as well as past and present appointment holders and MPs. Mercer Singapore, a global Human Resource consultancy firm also provided technical expertise in job evaluation, pay benchmarking and design.
What Is The Benchmark For Minister Salaries In Singapore?
In Singapore, Cabinet ministers have grades of M4 (most junior) to M1 (most senior). The salary benchmark for a M4 Minister is 40% less than the median income of the top 1,000 Singapore Citizens earners to reflect the ethos of political service.
It is important to note that this benchmark is not the formula that is used to determine how much Singapore ministers earn.
Rather, it can be thought of as the ballpark figure of what Singapore believes its ministers should be earning in principle, and the approximate salary range that the actual formula should yield.
Formula For Calculating The Entry Salary Of A MR4 Minister
We will take a detailed look at the formula for determining the salary of a MR4 Minister, since the salary of other officeholders’ are benchmarked against this.
The total annual salary of a MR4 Minister consists of two components: Fixed and Variable.
A MR4 Minister receives a fixed salary component of 13-months pay, regardless of job performance or national outcomes.
There are three variable components that an MR4 Minister could receive.
Annual Variable Component (AVC): Typically 1 month worth of salary.
Individual Performance Bonus: Typically 3 months for good performance.
National Bonus: Typically 3 months if national targets are met, which is evaluated by four equally-weighted metrics: 1) real median income growth rate of Singapore Citizens; 2) real growth rate of the lowest 20th percentile income of Singapore Citizens; 3) Unemployment rate of Singapore Citizens; and 4) Real GDP growth;
In other words,
MR4 Minister’s Annual Salary =
- Annual Salary (13 months)
- + AVC (typically 1 month)
- + Individual Performance Bonus (~3 months)
- + National Bonus (~3 months)
- = 20 months
Based on the 2012 White Paper, the formula yielded a benchmark monthly salary of approximately $55,000 (mid-point) for an MR4 Minister. This works out to an annual salary of $1.1 million, of which, the fixed component is $715,000 and the rest is variable. This is a reduction of 31% from the previous framework.
Excluding the PM, Ministers typically earn between 0.9 – 1.1 times their benchmark salary ranges, while an entry-level minister on MR4 grade may start at $46,750 or 0.85 – 1.1 times the mid-point.
In keeping with the “clean wage” policy, ministers no longer receive a pension, and would rely on the CPF system for their basic retirement needs. Medical benefits are also based on the MediSave/Subsidised Outpatient scheme that civil servants receive.
As ministers are promoted up the grade, their salary increases accordingly from the MR4 salary. Regardless of whether Ministers hold multiple ministerial portfolios, they will only receive one salary including their MP allowance.
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Formula For Calculating The Salary Of Singapore’s Prime Minister
The Prime Minister’s salary is based on a fixed point, which is pegged to two times the MR4 salary benchmark. This equates to a monthly salary of $110,000 or an annual salary of $2.2 million. This includes the 13th month bonus, AVC and National Bonus. Unlike the other ministers, the PM does not receive an Individual Performance Bonus, but instead receives a larger National Bonus. This remuneration package is a 36% reduction from the previous standard.
Prime Minister’s Annual Salary = 2 x MR4 Minister’s Annual Salary Benchmark
Formula For Calculating The Salary Of Singapore’s President
The framework also called for the President to receive the same salary as the Prime Minister, inclusive of 13th month and AVC, but without the Performance Bonus and National Bonus. This works out to be 70% of the Prime Minister’s wage or $1.54 million. This represents a reduction of 51% from the 2010 levels.
President’s Annual Salary = 70% of Prime Minister’s Annual Salary
Formula For Calculating The Salaries Of The Speaker And Deputy Speaker of Parliament
The 2012 White Paper also reviewed the salaries of other key appointment holders, including the Speaker and Deputy Speaker of Parliament.
The salary of a full-time Speaker, who serves as the presiding officer of Parliament, is pegged to the MR4 annual salary benchmark, based on a 14-month package totalling $1.1 million annually. This includes the 13-month and AVC, but excludes the Individual Performance Bonus and National Bonus.
However, as the current Speaker’s role is not a full-time position, the annual salary package is halved to $550,000 or a monthly salary of $39,286. Based on the revised framework, the Speaker’s salary was reduced by 53% compared to the 2010 salary.
Speaker’s Annual Salary = 50% of MR4 Minister’s Annual Salary Benchmark
As for the Deputy Speaker’s allowance, it remains unchanged from the previous framework, which is set at 15% of the Speaker’s salary. This amounts to an annual allowance of $82,500 or $5,893 monthly. This is a reduction of 15% from the 2010 levels.
Deputy Speaker’s Annual Allowance = 15% of the Speaker’s Annual Salary
Formula For Other Appointment Holders’ Salaries
Besides the abovementioned key appointment holders, here’s the salary list of the political appointment holders. The salaries for the other positions are set at a ratio to the MR4 total annual salary.
| Grade | Revised Total Annual Salaries* | Ratios Compared With MR4 |
| PM | $2,200,000 | 2.00 |
| DPM | $1,870,000 | 1.70 |
| MR1 | $1,760,000 | 1.60 |
| MR2 | $1,540,000 | 1.40 |
| MR3 | $1,320,000 | 1.20 |
| MR4 | $1,100,000 | 1.00 |
| SMS | $935,000 | 0.85 |
| MOS | $770,000 | 0.70 |
| Mayor | $660,000 | 0.60 |
| SPS | $572,000 | 0.52 |
| Parliamentary Secretary | $418,000 | 0.38 |
*The revised total annual salaries are based on the assumption of an AVC of 1-month, good individual performance and targets for National Bonus indicators being met.
Political Appointment Holders’ Salaries Are Reviewed Every 5 Years
An independent committee reviews the political salaries of appointment holders every five years to make sure the salary structure is still appropriate in light of the current economic climate.
The previous reviews were held in 2011, when the reference to the benchmark pool of 48 individuals was expanded to 1,000 individuals, limiting it to only Singaporeans working in Singapore. The last review was held in 2017 with a recommendation to adjust salary levels to match the updated benchmark to keep pace with the market.
The next review, which was supposed to be done in 2023, was deferred due to the uncertain geo-political and economic environment according to Parliamentary reply by Mr Chan Chun Sing in January 2024.
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This article was originally published on 13 March 2020 and has been updated to reflect the latest announcement on the change in political office.
