Understanding Singapore’s political salary framework

The current political salary framework was established by a review committee led by Mr Gerard Ee in 2011 and set out in the White Paper on “Salaries for a Capable and Committed Government ↗ (opens in new tab)”. The White Paper establishes the key principles underpinning the framework, the benchmark used for remuneration, and the components that make up political salaries. 

A subsequent review committee affirmed the framework in 2017 -  that it remained sound and that political salaries should be increased in line with the benchmark. However, the Government decided not to make any changes then due to prevailing economic conditions.

In December 2025, a review committee chaired by Mr Gan Seow Kee ↗ (opens in new tab) was appointed to review the salaries of political appointment holders and Members of Parliament (MPs), which have remained unchanged since 2011. This article explains how the framework works and the key adjustments arising from the review.

What are the key principles of the political salary framework?

The political salary framework is based on three core principles:

1. Calibre: The salary framework should take reference from market benchmarks to ensure individuals of the right calibre are not deterred from stepping forward to lead the country. 

2. Commitment: The salary framework should include a meaningful discount relative to market benchmarks to reflect the ethos of political service.

3. Clean: The salary framework should ensure a “clean wage” with no hidden perks.

How are political salaries determined?

Ministers are typically appointed to the MR4 grade, and it serves as the reference point for the political salary framework. Under the framework, the MR4 reference annual salary is benchmarked to the median annual income of the top 1,000 Singaporean income earners, with a 40% discount applied to reflect the ethos of political service. Salaries for political appointment holders are determined using ratios relative to the MR4 benchmark, taking into account the responsibilities of each appointment.

The MR4 reference annual salary has not been adjusted since 2011 when it was determined to be $1.1 million. 

What are the components of political salaries?

The MR4 reference annual salary is an all-in sum made up of both fixed and variable components. The fixed component (~65%) consists of the monthly salary and the 13th-month payment. The variable component (~35%) comprises:

• Annual Variable Component;

• Individual Performance Bonus; and

• National Bonus (tied to socioeconomic outcomes of Singaporeans).

The National Bonus is determined using the following four indicators, with each accounting for 25% of the National Bonus quantum:

1. Singapore Citizen unemployment rate;

2. Real income growth of the median Singapore Citizen (P50);

3. Real income growth of lower-income Singapore Citizens (P20); and

4. Real GDP growth.
   

Achieving the target level set for all four indicators result in a total National Bonus of 3 months. The National Bonus ranges from 0 to 6 months, depending on how far the outcomes fall below or exceed the target level. 

What changes were made following the 2026 review?

The 2026 Review Committee re-affirmed that the core principles of the current political salary framework remain relevant. It made recommendations to update the MR4 reference salary to align with the median income of the benchmark pool today and refine the salary structure in line with the current framework. 

The Government accepted the recommendations, which will help to ensure that the framework remains able to secure capable and committed political leadership to position Singapore for long-term success. More details on the Government response here: https://www.psd.gov.sg/newsroom/building-a-strong-team-for-singapore/ ↗ (opens in new tab)

Will the current political appointment holders get a windfall from the salary review?

No. While the Government accepted the Committee’s recommendations to ensure the framework remains able to secure capable and committed leadership for the future, the Prime Minister has decided not to move current political appointment holders immediately to the updated reference salaries. Instead, existing political appointment holders will receive a one-off adjustment of up to 9% from 15 October 2026, depending on individual circumstances, including performance. This means an MR4 Minister who currently receives a $1.1 million annual salary may receive an increment of almost $100,000, bringing his annual salary to around $1.2 million. Thereafter, any subsequent changes will be considered based on individual performance and responsibilities.  

Do Political Appointment Holders with multiple portfolios receive more pay?

No. Political Appointment Holders receive only one pay even if they hold more than one portfolio. 

How is the Prime Minister’s salary determined?

Under the framework, the basis for determining the Prime Minister’s salary has not changed.

The Prime Minister's total annual salary is set at two times the MR4 reference annual salary.  However, his variable component is calculated differently from the other Political Appointment Holders. 

First, the Prime Minister does not receive an Individual Performance Bonus, as there is no one to assess his individual performance. Second, to maintain the principle that a significant proportion of remuneration is performance-linked, the Prime Minister's variable pay includes twice the National Bonus component of other Ministers. This links a larger proportion of the Prime Minister's remuneration to national socioeconomic outcomes.

The Prime Minister’s pay will increase in line with the 2026 adjustment to the MR4 reference salary. Prime Minister has announced that he will donate the increase in his salary for the next five years.

When will the changes be implemented?

The refinements to the framework and updates to the reference salaries will be implemented from 15 October 2026.  The only exception is that the updates to the National Bonus targets will take effect from 1 January 2027, as the indicators are calculated on a calendar-year basis.