Singapore’s government will raise the annual salaries of ministers and other office holders, including Prime Minister Lawrence Wong, who is already the world’s highest-paid political leader.
Wong’s annual pay package will rise from S$2.2 million to S$3.6 million, an increase of more than 60%.
He said he would donate the increase in his pay package to charity over the next five years.
Wong said higher salaries were necessary to attract capable people to political office, while the government has long argued that competitive ministerial pay helps deter corruption.
However, the move has drawn criticism in Singapore, where concerns over job security and the rising cost of living remain strong.
Government says higher pay needed to attract talent
Wong acknowledged on Tuesday that ministerial salaries had attracted scrutiny because they were significantly higher than what most Singaporeans earn.
The median monthly income in Singapore is S$5,775.
Wong said he had faced difficulties persuading business leaders and top civil servants to leave their careers and enter politics.
While the government could not match the salaries some of these individuals earned in the private sector, he said it should not make the financial hurdle unnecessarily high for those considering a move into politics.
“Overall, I believe this will give me and future prime ministers a better chance of persuading capable Singaporeans to step forward, and of building the strongest possible team for Singapore,” he said.
Under the new pay scheme, the base pay package for ministers will increase from about S$1.1 million to around S$1.2 million.
Wong expects most ministers to receive about S$1.35 million by the end of the current term of government, as their pay will increase according to performance.
Part of the ministerial pay package is linked to whether the country achieves targets involving the unemployment rate, income growth and GDP growth.
Ministerial pay remains a political flashpoint
High salaries for Singapore’s ministers have long been a source of criticism for the ruling People’s Action Party (PAP), which has governed the country since independence.
In the 2011 general election, the PAP recorded its lowest vote share in decades, with voters’ dissatisfaction over ministerial pay and immigration policies among the issues cited.
The government subsequently cut ministers’ salaries the following year.
Wong’s predecessor, Lee Hsien Loong, also pledged in 2007 to donate his salary increase to charity for several years.
The government has for years pointed to Singapore’s low level of corruption as evidence that its ministerial pay system works.
Singapore has consistently ranked near the top of Transparency International’s annual Corruption Perceptions Index, with the government arguing that higher salaries reduce the temptation for ministers to accept bribes.
However, the issue remains sensitive in a country where average incomes are far below the salaries received by political office holders.
Public reaction reflects economic concerns
The latest announcement has prompted further criticism online.
Many people posted comments on Tuesday describing the pay increase as “tone deaf”, citing concerns over retrenchments, employment prospects for fresh graduates and inflation.
Government figures showed that retrenchments in Singapore had reached their highest level in more than five years in the latest quarter.
There were also some who supported the move, arguing that higher salaries were necessary to ensure that “the best of the best” were running the country.
