Advanced Search Advanced Search Close Panel All of these words This exact phrase Any of these words Without these words Search within: PSDWhole of Government Expand All Collapse All Top 5 Most Popular FAQsRemuneration for Ministers and Members of Parliament1. What is a Member of Parliament (MP)’s annual allowance? What are the components? What about Non-Constituency MPs (NCMPs)/ Nominated MPs (NMPs)? MPs are paid an allowance for the time and expenses incurred in serving in that capacity. Our MPs serve dual roles – they have a community-based role, i.e. looking after the needs of their constituents and raising their concerns in Parliament, and also a legislative role in Parliament where they can influence decisions on Government budgets, and enact or amend legislation, including the Constitution.As MPs play a political role, their allowance should be pegged to that of the political appointment holders. But since MPs do not have an executive role, MPs are given only a monthly allowance, a 13th month bonus and AVC. Hence, an MP’s annual allowance is 17.5% of the MR4 benchmark, i.e. a drop of 3% from the 2010 allowance. The annual MP allowance is $192,500.Prior to 21 May 2011, only MPs elected before 1995 were eligible for pension. However, just like the political appointment holders, the pensions of these MPs have been frozen as at 20 May 2011. They will receive the frozen pension when they step down from their MP positions.NCMPs and NMPs have smaller roles than MPs. They do not have a community role as they do not have constituents. They also have a reduced legislative role in that they cannot vote on government budgets and changes to the Constitution. Hence the annual allowance of an NCMP / NMP is pegged to 15% of the MP’s annual allowance. An NCMP/NMP’s annual allowance is $28,900, which is a drop of about 4% from the 2010 allowance.MPs are on the Medisave-cum-Subsidised Outpatient (MSO) scheme. There are no other perks. 2. Who are these people in the top 1,000 income earners list? Based on Year of Assessment 2011 Income Data from IRAS, the top 1,000 Singapore citizen income earners consist of the following: Senior management positions including Chief Executive Officers, Chief Operating Officers, Chief Financial Officers, Chief Information Officers, Presidents, Chairmen, Directors, General Managers from a range of industries such as wholesale and retail, real estate and construction, manufacturing, communication, information and transport, healthcare and hospitality sectors (48%);Representatives from the financial services including bankers, asset managers, traders, Managing Directors, Senior Vice Presidents (38%); andProfessionals including lawyers, accountants, doctors, engineers (14%). 3. What does the revised Ministerial salary framework consist of? The revised salary formula features fixed and variable pay components which are linked to individual performance and national outcomes, i.e. Annual Salary = Fixed (13 months)+ Annual Variable Component (typically 1 month)+ Individual Performance Bonus (3 months for good performance)+ National Bonus (3 months if targets are met)= 20 months.A Minister may start at the lower end of the MR4 range with a monthly salary of $46,750. This works out to an annual salary of $935,000, of which $607,750 is fixed and the rest is variable. At the benchmark level, the monthly salary is $55,000, which works out to an annual salary of $1,100,000. The fixed salary is $715,000 and the rest is variable.The salaries of the appointment holders are performance-linked, to ensure that the leaders are accountable for their roles and responsibilities. The salaries are also linked to the socio-economic outcomes of Singaporeans. 4. Why do political appointment holders also get MP allowance? As is international practice in Westminster Parliamentary systems, all political appointment holders will also receive MP allowances as they have the dual roles of being MPs which involve looking after the needs of their constituents and raising their concerns in Parliament. 5. Why benchmark to the top 1,000 Singapore Citizens income earners? It is important to note that when considering potential candidates to take up political office, the first quality that the Government looks out for is a sense of public service. The Government looks for people who have their heart in the right place, who can empathise with Singaporeans from all walks of life, who want to contribute to the betterment of our Singapore and Singaporeans. This has been, and should always be, the important basic requirement for any Member of Parliament or Minister.But having a passion for public service is not in itself sufficient to run a country well. The Government therefore wants people who not only have a sense of public service, but also have many other qualities: organisational and leadership capabilities, capacity to handle multiple responsibilities, ability to solve problems and take charge in a crisis, and the ability to hold his own with world leaders and further Singapore’s interests. It does not mean that only people who are among the top 1,000 earners would meet all these criteria, or that the Government will only draw from this pool. Indeed, many top earners have the competencies but not the sense of public mission. But looking at the responsibilities of the jobs that these 1,000 hold, this is a reasonable level that reflects the quality and abilities of people that Singapore seeks to bring in as Ministers for continued good government. If you are unable to find an answer to your query, please submit your Feedback to let us know how we can help you.