Singapore government defers 2023 ministerial salary review, citing 'other pressing issues', will review framework and benchmark 'in due course'

SINGAPORE— The review of salaries for political office holders, originally scheduled for 2023, was deferred by the government due to what the Minister-in-charge of the Public Service Chan Chun Sing described as "other pressing issues". In a written parliamentary response on Tuesday (9 Jan), Chan highlighted the existing global geopolitical uncertainties and economic concerns as the primary reasons behind the deferment.

"In 2023, the global geopolitical situation has become more uncertain, with conflicts in the Middle East and Ukraine, and continuing heightened geopolitical contestation," Chan said. "On the economic front, significant uncertainties and downside risks in the global economy remain, impacting our local economy and our wages and inflation outlooks.

"Hence, we decided to focus on dealing with these key challenges at hand and defer the review of political salaries for now."

Chan was responding on behalf of Prime Minister Lee Hsien Loong to parliamentary questions posed by Progress Singapore Party's Non-Constituency Member of Parliament (NCMP) Hazel Poa and MP Alex Yam from the People's Action Party representing Marsiling-Yew Tee. Yam sought an update on the review, while Poa inquired about the review's progress and the composition of the review committee.

Government to review political salaries in 'due course'

Chan affirmed the government's commitment to reviewing the political salaries framework and benchmark "in due course to ensure that they remain relevant and up to date". He reiterated that recommendations from the previous political salaries review announced in 2018 suggested a periodic assessment every five years or as necessary.

Despite this, no changes were made to political salaries following the 2018 review due to the validity of the existing salary structure and prevailing economic uncertainties in the previous few years.

The committee responsible for the last political salaries review was established in 2017. In January last year, Chan had indicated a targeted review for 2023, with details to be shared in "due course".

Structure and adjustments in salaries

Presently, an entry-level minister's benchmark salary is determined based on the median income of the top 1,000 Singapore citizen earners, with a 40 per cent "discount" to reflect the "ethos of political service", according to the Public Service Division's website.

The PSD clarified that salaries of political office holders are adjusted based on ratios to the pay of an entry-level minister, considering their varying roles and responsibilities. For instance, the prime minister earns twice the salary of an entry-level minister.

The PSD revealed that as of 2023, the benchmark level for a minister's monthly salary is S$55,000, equating to an annual salary of S$1.1 million.

In 2018, an independent committee led by Dr Gerard Ee suggested an annual upward salary adjustment to align with annual benchmark movements of 9 per cent since 2011.

The proposal included setting the annual salary for an entry-level minister at S$1.2 million, encompassing a 13th-month bonus, a three-month performance bonus, and a National Bonus contingent on meeting specific indicators.

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