Chan Chun Sing wraps up political salary debate in Parliament

Defence Minister Chan Chun Sing concluded a parliamentary debate on political salaries, clarifying various aspects of the topic. He explained that the S$1.8 million figure being discussed is not an entitlement for every minister, but rather a reference point. Currently, a minister earning S$1.1 million would only see their salary increase to approximately S$1.2 million after a one-off adjustment in October.

This adjustment is capped at 9% and varies based on individual circumstances such as performance and when the last salary adjustment occurred.

Chan emphasized that not all ministers will reach the S$1.8 million benchmark in the near future, with most MR4 ministers expected to be at S$1.35 million by the end of the term. The figures mentioned are not guaranteed; about 65% of the annual salary is fixed, while the remaining 35% is variable. For instance, a minister earning the S$1.2 million benchmark would receive around S$780,000 in fixed salary, with the potential for up to S$420,000 in bonuses depending on individual and national performance. However, in weaker years, these bonuses could be zero.

The minister noted that the variability in bonuses is intentional, aiming to make the framework accountable and avoid misleading perceptions. From next year, the targets for socio-economic indicators related to jobs and incomes will be tightened, and past back-testing suggests that applying these targets over the past decade would have resulted in an average national bonus that is about one month lower each year.

Chan stressed that financial compensation should not be the primary reason for someone considering a political role. Instead, they should consider the public scrutiny, loss of privacy, the uncertainty of being elected, public expectations, and the possibility of failure. He reiterated that the most crucial factor is the responsibility to "get it right" for Singaporeans, emphasizing that this is not a business venture but about the well-being of the nation's citizens.

In closing, Chan highlighted that the debate was not solely about the allowances or earnings of MPs and ministers. Instead, it was about what Singapore can achieve and aspire to, ensuring opportunities for its people, their confidence in the future, and a better Singapore for future generations to inherit.