Ministerial salaries review committee's proposal

The committee to review ministers' salaries has recommended wage cuts of between 36 and 53 per cent for political appointment holders.

Here is the committee's report in full:

  • Pension scheme to be removed
  • President sees 51% cut and PM sees 36% cut;
  • Minister's salary to be cut by 37%
  • Minister's salary to start at $935,000
  • The Committee to Review Ministerial Salaries recommends cutting the salaries of the President, Prime Minister, Speaker of Parliament, Deputy Speaker of Parliament, and political appointment holders; as well as the allowance of Members of Parliament (MP).

    The Committee also recommends removing the pension scheme.

    The President's annual salary should be cut by 51% to $1,540,000. The Prime Minister's annual salary should be cut by 36% to $2,200,000.

    A Minister at the MR4 grade (i.e. entry-level grade) should be paid an annual salary of $1,100,000, a cut of 37%. A Minister at the lower end of this grade will start at an annual salary of $935,000.

    As is the current practice, the Prime Minister can also appoint a newly appointed entry level Minister to be an Acting Minister on a lower grade and thus go below the MR4 range, ie Acting Minister who is placed on a Senior Minister of State grade.

    The Committee also made recommendations on a new benchmark. A new salary framework and National Bonus linked to the socio-economic progress of average and lower income Singaporeans is also proposed.

    New Benchmark

    The new salaries are based on our recommendation to benchmark the MR4 Minister's salary to the median income of the top 1,000 earners who are Singapore citizens and with a 40% discount to signify the ethos and sacrifice that comes with political service.

    This benchmark is based on a larger pool that does not specify occupations and covers only Singapore Citizens, the pool of talent that our political leaders will be drawn from.

    Based on the IRAS Year of Assessment 2011 income data, the new benchmark figure is $1,100,000.

    See page 21 of the Committee's Report for the reasons why we did not choose other benchmark methods.

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