Frequently Asked Questions

The new benchmark for an entry-level MR4 Minister is based on the median income of the top 1,000 Singapore citizens income earners, with a 40% discount to reflect the ethos of political service.

The salaries of other political appointment holders will be determined based on their salary ratios to MR4. The salary ratios reflect the roles and responsibilities of the different political appointment holders. For example, the Prime Minister who is the head of the Executive will earn 2 times the salary of an MR4 Minister.

The salaries of political appointment holders will be adjusted according to the movement of the benchmark as it responds to market conditions.

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.

Based on Year of Assessment 2011 Income Data from IRAS, the top 1,000 Singapore citizen income earners consist of the following:

1. 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%);
   
   
2. Representatives from the financial services including bankers, asset managers, traders, Managing Directors, Senior Vice Presidents (38%); and
   
   
3. Professionals including lawyers, accountants, doctors, engineers (14%).

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.

Consistent with HR practice in both the Singapore public and private sectors, each grade has a salary range to accommodate different monthly salaries. The salary range system for Deputy Prime Ministers, Ministers and other political appointment holders gives the Prime Minister the flexibility to adjust their salaries when necessary. This also provides for the award of increments so that political appointment holders do not need to be promoted to the next grade in order to get a salary adjustment.

The monthly salary of each grade has a range of 0.9 to 1.1 of the mid-point of that range, except for the starting point of the entry level MR4 Minister which is lower at 0.85 of the reference monthly salary. A Minister on the starting point of the MR4 salary range would therefore have 13 months of fixed salary amounting to $607,750. This represents the basic annual salary, without bonuses, which a Minister at the start point of the grade would earn. With variable bonuses in a typical year, this would come up to a total of $935,000.

The current practice of paying a political appointment holder only one pay package regardless of the number of appointments held will be retained.