SINGAPORE — Ministerial wages will remain unchanged despite a review committee’s suggestion to raise salaries by 9 per cent in line with annual benchmark movements, Deputy Prime Minister Teo Chee Hean said on Thursday (Mar 1).

The independent committee, the second committee convened since 2011 to review the basis and level of political salaries, was set up last year and submitted its report to Prime Minister Lee Hsien Loong in December.

It found that political salaries have remained unchanged since 2011, even as the benchmark they are linked to has risen by around 9 per cent over the period, or a compounded growth rate of 1.5 per cent anually.

The committee — chaired by social services champion Gerard Ee — also recommended an adjustment to the ranges for the “national bonus” component of ministerial salaries, and raising the allowances for Non-Constituency Members of Parliament (NCMPs) from 15 to 20 per cent of election campaigns.

Mr Lee thanked the committee for their recommendations, with the Government deciding not to make any changes to ministerial salaries or allowances for NCMPs, Mr Teo told Parliament during the debate over the Prime Minister’s Office’s budget on Thursday, the first day of the Committee of Supply debates.

He added: “The Government has decided that since the scheme remains valid and the economy is still in transition, we will not change anything now and will maintain the current salary structure and level. We will review the matter again after five years or when it becomes necessary.”

Following an earlier review, ministerial wages now comprise fixed and variable pay components which are linked to individual performance and national outcomes, to ensure that the leaders are held accountable for the responsibilities.

In 2012, Parliament endorsed recommendations to link ministerial salaries to the median income of the top 1,000 earners who are Singaporean citizens, with a 40 per cent discount to reflect the ethos of political service.

Currently, the annual salary for an entry-level minister at “MR4” grade, inclusive of bonuses, has been kept at the 2011 benchmark of about S$1.1 million.

Noting the committee’s affirmation that current salary structure for political holders remains “relevant and sound”, Mr Teo said: “While the MR4 benchmark has increased by 9 per cent since 2011 … the Government notes that the 2017 MR4 benchmark is lower than (that in 2016). Hence, the Government has decided to maintain salaries at the current level and watch salary trends further.”

The Government has also decided to maintain current indicators for the national bonus. “The economy is going through a period of transition, and the Government has decided to watch the changing economic conditions and outlook further, rather than make any refinements,” added Mr Teo.

The Government will keep the Parliament informed of future changes, and has released the committee’s latest report, said Mr Teo.