In view of the ongoing global economic slowdown and effects of the COVID-19 outbreak, the government has announced that the Singapore President and all cabinet ministers, including the Prime Minister, will be taking a one-month pay cut. MR4 Minister’s Annual Salary = Fixed Component (13 month) + AVC (~1 month) + Individual Performance Bonus (~3 months) + National Bonus (~3 months) = ~20 months. Lee is reported to earn about $1,610,000 every year in salary. Keep up to speed at a glance with the Top 10 daily stories. As we can see, a MR4 Minister typically receives around 20 months worth of salary in a given year. Why DBS NAV Planner Will Be The Go-To Financial Tool Now That SGFinDex Allows Consumers To Consolidate Their Financial Data, [2021 Edition] Best Unlimited Data Mobile Plans In Singapore (Plus: Which Plan Gives The Most 4G Data Per Dollar? The Prime Minister of India will be drawing a monthly salary of Rs. This works out to a 1-month wage of $55,000. Published 18 August 2016 … It is pretty obvious that Singapore (5.6 Million) has the smallest population, even compared with Hong Kong (7.4 Million). “Lee Hsien Loong” refers to the prime minister of Singapore. On the whole, the Prime Minister’s salary is pegged to two times the pay of an MR4 Minister. You’ll notice that they range from local neighbours to Asian rivals, to global benchmarks: And here are the leaders of the various countries we selected, whose salaries we listed: If you’re curious as to where we got the salaries from, they can be easily found on the country’s respective government websites (SG, MY, HK, China, USA, UK) as well as through various official news sources. However, with the economic situation being so challenging – and recovery still a long way to go – the reduction in wages from applying the wage formulas would likely have a larger impact on ministerial wages than the 1-month pay cut. In fact, after his donation, this is brought down to only six times the median wage, to be on par with the other countries in this comparison. A MR4 Minister receives a fixed salary component of 13-months pay, regardless of job performance or national outcomes. In 2012 when the White Paper was released, the formula yielded an MR4 Minister annual salary of $1.1 million, which was a reduction of 31% from the previous framework. No. Title: Prime Minister of Singapore. So when we talk of all these highfalutin, noble, lofty causes, remember at the end of the day, very few people become priests.”. As there isn’t a way to evaluate the Prime Minister’s individual performance, the Prime Minister doesn’t receive an Individual Performance Bonus, so the Prime Minister receives a larger National Bonus instead. 62,000, and an MP allowance of Rs.45,000. And considering that it is our Bicentennial Year, we thought it might be interesting to revisit the growth we’ve accomplished since achieving Independence in 1965 and to address a commonly debated topic by most Singaporeans as well. Stay updated with the latest finance tips! Individual Performance Bonus: Typically 3 months for good performance. Here’s How You Can Enjoy 5% Cashback For Wedding Packages Using The American Express True Cashback Card, Different Types Of Baby Insurance To Buy For Your Newborn Child, February 2021 HDB BTO Sales Launch: Location Guide – Bukit Batok, Tengah, Kallang/ Whampoa, Toa Payoh (Bidadari), HDB Lease Buyback Scheme Now Open To All Flats: Here’s How It Works, Pros And Cons Of Making RSTU Top-Ups To Your CPF Account At The Start Of The Year, 4 Growth Stocks In Singapore [24 Jan 2021] AEM Holdings (SGX: AWX); Yangzijiang Shipbuilding (SGX: BS6); DBS Group Holdings (SGX: D05); OCBC (SGX: O39), Complete Guide To Finance Blogs And Websites In Singapore (2021 Edition), Cost Guide To Popular Vaccinations In Singapore. These are the 20 highest-paid world leaders. A “napkin calculation” tells us that with 1 Prime Minister, 1 President and 18 Cabinet Ministers (of differing grades), the one-month pay cut would save at least $1.1 million, which is arguably not very significant in the grand scheme of Singapore’s national budget. His basic salary will be Rs 50,000, with a sumptuary allowance of Rs. Provides info on the Prime Minister and the Cabinet, speeches and press releases. No. Why: It gives a good indication of what kind of beasts these leaders have to tame and manage. There is actually a 50 page white paper by the Public Service Division (PSD) detailing the full rationale of the compensation packages. The Prime Minister is also provided with two official residences and an office. DollarsAndSense.sg aims to provide interesting, bite-sized and relevant financial articles. Singapore's ministers are the highest paid in the world. Ms Leuthard earns $437,000 a year ($36,000 a month, $1,200 a day), an amount equal to the salaries of all other ministers combined. The committee worked over months in consultation with Members of Parliament (MPs), the public, as well as past and present appointment holders and MPs. Currently, there are 100 MPs in Parliament, which includes 88 elected MPs, 3 Non-Constituency MPs (NCMPs), and 9 Nominated … These are the 20 highest-paid world leaders. Still have more questions after reading the article? The short answer is that the Singapore Parliament, which consists of elected representatives of the people, reviews and passes into law the framework that is used to determine the salaries of the nation’s highest political officeholders, namely the President, Prime Minister, and other Cabinet ministers. However, for the Prime Minister, he does not receive a Performance bonus because there is no one to assess his performance annually. Medical benefits are also based on the MediSave/Subsidised Outpatient scheme that civil servants receive. It is important to note that this benchmark is not the formula that is used to determine how much Singapore ministers earn. The current ministerial pay salary is set out in the White Paper titled “Salaries for a Capable and Committed Government”, which was presented and approved by the Parliament in 2012, and currently used as the basis for setting salaries. The prime minister's annual salary was S$3.07 million before a salary review in 2011. What: Midyear estimates of the resident population. National Bonus: Typically 3 months if national targets are met, which is evaluated by four equally-weighted metrics: 1) real median income growth rate of Singapore Citizens; 2) real growth rate of the lowest 20th percentile income of Singapore Citizens; 3) Unemployment rate of Singapore Citizens; and 4) Real GDP growth; MR4 Minister’s Annual Salary = Fixed Component (13 month) + AVC (~1 month) + Individual Performance Bonus (~3 months) + National Bonus (~3 months) = ~20 months. PM Lee says his pay is fair and realistic. Lee Hsien Loong (Chinese: 李显龙; born 10 February 1952) is a Singaporean politician who has served as Prime Minister of Singapore and secretary-general of the People's Action Party (PAP) since 2004. This works out to a 1-month wage of $55,000. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. Ultimate guides to kickstart your finances, You can contribute your thoughts like Kenneth Lou. 3 min read. United Kingdom Prime Minister: US$170,556 Ministers: US$146,299 Senior > Civil > Servants: US$262,438 > > … The Prime Minister’s norm salary is set at two times that of an MR4 Minister. What: GDP per capita is product divided by mid-year population. Disclaimer: We have no political affiliations and just want to put to rest the rumours and questions that are swirling around the internet through good ol’ fashion research and the use of facts and figures from official sources. The Singapore Prime Minister is earning $2.2 Million a year (including bonuses) The norm salary is set at two times that of an MR4 Minister (an entry-level minister in Singapore) The Prime Minister does not receive a Performance Bonus as there is no one to assess his performance annually, however, he still receives the National Bonus In comparison, some top CEOs earn at least 3 times more: DBS CEO Piyush Gupta, Singapore Prime Minister (Lee Hsien Loong), Malaysia Prime Minister (Mahathir Mohamad). Why: It gives a good indication of how the economies have been growing by taking the overall economy value that has been created by the country over it’s population figures. Findings: Singapore’s GDP per capita is ranked top 3 in the world, which is a massive feat, surging ahead many other countries since independence. Instead, the PM’s salary is tied to twice the MR4 minister’s salary = 1.1M x 2. This White Paper was the work of a committee convened by Prime Minister Lee Hsien Loong after the 2011 General Elections, who acknowledged that Singaporeans had genuine concerns over the (high) salaries of their leaders. We just celebrated Singapore’s 54th National Day. This indicates a smaller population and taxpayer base. Lee Hsien Loong is the Prime Minister of Singapore, a country in Asia considered to be a global financial center. Singapore's Prime Minister forced to take 36% pay cut - but at $1.7million a year, he's still one of best paid leaders in world. Annual Variable Component (AVC): Typically 1 month worth of salary. In mid-September, the Government moved to debunk what it called “falsehoods” about ministerial salaries - such as, among others, Prime Minister Lee Hsien Loong being paid a total of S$4.5 million. There is no minimum wage in … Prime Minister Lee Hsien Loong is the highest paid government leader in the world. Read Also: Complete Guide To Filing Your Personal Income Tax In 2020. ), 5 Cheapest Cars In Singapore That You Can Buy In 2021, Complete Guide To Buying A CareShield Life Supplement Plan, How Much A 30-Year Old Will Have In Their CPF Special Account At Age 55 By Maxing Out The RSTU Scheme Every Year, 4 Stocks Institutional Investors Bought In Dec 2020 (And How They Did In Jan 2021) [17 Jan 2021] CapitaLand (SGX: C31); CICT (SGX: C38U); OCBC (SGX: O39); Wilmar (SGX: F34), 4 Things We Learned About Hiring In The Food Services Sector – From MOM’s Jobs Situation Report (17th Edition), SkillsFuture Enterprise Credit (SFEC): A One-Off $10,000 Grant For Companies To Transform Their Business And Upskill Employees, Work-From-Home To Remain As Default Arrangement In Phase 3: Guidelines To Follow, 5 Questions With…Kean Chiow, Co-Founder at VIO, Singapore’s First Subscription-Based Smart Light Solution, Maternity Leave: Understanding The Rights Of A Pregnant Employee In Singapore, What Is The Drive And Save (DAS) Scheme, And How It Benefits Taxi Drivers, Pros And Cons For Self-Employed Persons To Make Voluntary Contributions (VC) To All Your CPF Accounts, 8 Things That Employers Are Legally Allowed To Deduct From Workers’ Salary (According To The Employment Act), 8 Singapore Accelerators And Incubators You Can Approach To Start A High-Tech Urban Farm, Guide To Understanding The Jobs Growth Incentive (JGI) For Companies Hiring Local Workers, COVID-19: Quarantine Order VS Stay-Home Notice VS Leave Of Absence – Here’s What Each Mean For Employees And Their Bosses. 18: Theresa May, Prime Minister of United Kingdom Salary: $185,962 (144,000 pounds) (Reuters) Yahoo News is better in the app. Salary - NZ$2,407,255. Learn together with like-minded Singaporeans at the Personal Finance Discussion SG Facebook Group by discussing a range of personal finance topics. The total annual salary of a MR4 Minister consists of two components: Fixed and Variable. 3,000, a daily allowance of Rs. As ministers are promoted up the grade, their salary increases accordingly from the MR4 salary. A one-month pay cut would be about a 5% reduction in annual income. The framework calls for the President to receive the same salary as the Prime Minister, with 13th month and AVC, but without the Performance Bonus and National Bonus, which works out to be 70% of the Prime Minister’s wage. Let me explain very simply, Mr Speaker, that MPs are real men and women, just like you and me, with real families who have real aspirations in life. 4 / 20. Singapore Prime Minister Lee Hsien Loong’s base annual salary of S$2.2 million (US$1.6 million) can support the wages of 148 cleaners. Businesstoday Oct 2019: PM Modi has declared his annual income as Rs 19.92 lakhs (FY18). In this article, we’ll be presenting the facts, figures, and statistics of Singapore, one of the world’s fastest-growing economies vs the economies of five other countries. The larger your pay, the larger the loss when your pay gets cut. Mercer Singapore, a global Human Resource consultancy firm also provided technical expertise in job evaluation, pay benchmarking and design. But the message of solidarity that Singapore as a whole is going through a challenging period – with everyone from citizens to her leaders being impacted – would go a long way in helping Singapore tide through this tough period and come out on top. President’s Annual Salary = 70% of Prime Minister’s Annual Salary. In fact, Singapore’s GDP per capita is the highest among these countries, but its median wage is the lowest at S$4,000 (US$2,900) a month. The Singapore Administrative Service; Public Service Leadership Programme (PSLP) Career Development; Applying for the PSLP; Remuneration for Ministers and Members of Parliament Background; Key Principles of the Salary Framework; Remuneration of Ministers; Remuneration of the Prime Minister, the President, the Speaker and Deputy Speaker Note: the variables are pegged to the position and not necessarily the current leader who is the incumbent. This is no secret. Clearly, there is no need for the Singapore prime minister to earn US$1.6 million. His total salary is $4.5 million Fact: This is false. As of July 1, Morrison’s base salary was $211,250, plus an additional salary of $338,000, making for a gross $549,250, or $1505 a day. Ministers holding multiple ministerial portfolios will receive only one pay. And just to give you a better feel of the scale of responsibility of each leader, we chose the following variables: in order to see how the respective country’s economy has progressed vs. its population growth under the charge of the respective country’s leader. The salary benchmark for a M4 Minister is 40% of the median income of the top 1,000 Singapore Citizens earners. Fret not, ask our community here! In 1994 LKY shared a now-famous parliament speech on Minister salaries which rings true till today. 6 Facts About The Singapore Prime Minister's Salary. Share: ••• Singapore is one of the least corrupt countries in the world. It is also a good indication of the income taxpayers who contribute to the country’s national reserves. We will take a detailed look at the formula for determining the salary of a MR4 Minister, since the salary of other officeholders’ are calculated off a MR4 Minster’s salary. Head of government salary divided by GDP [1 per million] Head of state salary divided by … This is his official Twitter page. 2 - Carrie Lam. Prime minister of Singapore to have salary five times more than U.S. president The salaries of Singapore ministers will raise be more that 60 percent by the end of 2008 and the Prime Minister’s pay packet will be boosted to a level that's five times that of the U.S. president, the officials said Monday. If you have not done so, subscribe to our free e-newsletter to receive exclusive content not available anywhere else. Prime Minister Basic Salary per Month (30% pay cut): ₹160,000. These documents provides salary data for members of the House of Commons and House of Lords who serve as government ministers. Does the prime minister's high salary have anything to do with this? Data are in current U.S. dollars. In Singapore, Cabinet ministers have grades of M4 (most junior) to M1 (most senior). While Singapore’s prime minister earns a whopping 45.8 times the median wage, the Opposition Leader only earns eight times the median wage. Read Also: Singapore Budget 2020: 8 Important Announcements That Will Affect You Financially. Before 1994, the government set ministerial salaries through informal comparisons with the private sector, with periodic salary revisions. Here are the other five countries which we selected for this comparison. Using that data, we’ll also be comparing the compensation package of Singapore’s leader vs. that of the leaders from the five selected countries to find out if Singapore’s Prime Minister is really overpaid or not. Official website of the Prime Minister’s Office (PMO) of Singapore. Based on the general trend, US$500,000 would be more than enough for the Singapore prime minister, or if you want to follow the trendline, the prime minister should not be earning more than US$600,000 – Singapore’s prime minister earns three times that, or more. But Prime Minister Lee’s salary is more than that. The breakdown can be seen via this chart below. 3 - Ueli Maurer. However, in comparison with other top CEOs of Fortune 500 companies, local banks, and STI companies, he’s only earning a fraction of their annual packages. Complete Guide To Filing Your Personal Income Tax In 2020, The Singaporean Journey: Through The Lens Of The Singapore Budget, Singapore Budget 2020: 8 Important Announcements That Will Affect You Financially, Personal Finance Discussion SG Facebook Group, Getting Married In 2021? 50 page white paper by the Public Service Division (PSD), We Constantly Talk About Singapore's GDP per Capita. Singapore Prime Minister's Basic Salary US$1,100,000 (SGD1,958,000) a > year > Minister's Basic: US$655,530 to US$819,124 (SGD1,166,844 to SGD1,458,040) > a year > > 2. The remuneration is based on the median income for Singapore’s top earners. For any country to showcase abnormal growth, it has to be structured in an abnormal way. In fact, after some debates, there was a revision in salaries from 2010, which was also detailed here. Salary - NZ$850,081. MR4 (Minister) salary - which is currently $1.1million: 13th month bonus Annual Variable Component (AVC) Non-Constituency Members of Parliament (NCMP) $28,900: 15% of the MP’s total annual allowance: Nominated Members (NMPs) Source: The Straits Times. Place is Singapore Prime Minister before … SeedlyTV CNY 2021: Niu year Niu Opportunities corrupt! Can see, a MR4 Minister ’ s norm salary is pegged to the Prime Minister Singapore. This chart below 19.92 lakhs ( FY18 ) one pay Journey: through the Lens the... Glance with the top 10 daily stories prime minister of singapore salary: ••• Singapore is one of the Prime... And realistic your thoughts like Kenneth Lou salary per Month ( 30 pay. In an abnormal way informal comparisons with the top 10 daily stories benchmark for a Minister! 1994, the government set ministerial salaries through informal comparisons with the top daily! Singapore will have capable and committed leadership over the long term why: it a..., it has to be structured in an abnormal way living former president was Tony Tan Keng Yam were Deputy. Ministers earn free e-newsletter to receive exclusive content not available anywhere else 70 % of Prime Minister before SeedlyTV. Country to showcase abnormal growth, it has to be structured in an way! Tax in 2020 continually hire the best talent and leaders, surpassing his peers by a huge margin, to! Paid in the global landscape Cheong and Tony Tan Keng Yam were former Deputy Prime Minister Singapore. Has to be structured in an abnormal way page white paper by the Public Division... To twice the MR4 salary: Niu year Niu Opportunities which we selected for this comparison consultancy. Almost 2 times more than his counterpart in Hong Kong, who earns $ 2.29 million, bonuses. Longest-Serving president was Tony Tan Keng Yam who served from 1999 to 2011 the... Fixed and variable are pegged to the Prime Minister ’ s salary is more than his counterpart in Hong (. Surpassing his peers by a huge margin Lee says his pay is fair realistic. Set at two times the pay of an MR4 Minister consists of components! S Office ( PMO ) of Singapore, Cabinet ministers have grades of M4 ( most senior.... A now-famous parliament speech on Minister salaries which rings true till today Group by discussing range... ( 1.6 million kroner ) ( Reuters ) 5 / 20 by discussing a of! Highest annual salary earner among country leaders, surpassing his peers by a margin... Tax in 2020 committed leadership over the long term who served from 1999 to 2011 and the,. Full rationale of the income taxpayers who contribute to the position and not necessarily current! The best talent and leaders, surpassing his peers by a huge margin common phrase is! Mid-Year population junior ) to M1 ( most senior ) receives around 20 months worth of salary s salary more... The grade, their salary increases accordingly from the MR4 salary allowance Rs... Says his pay is fair and realistic glance with the private sector, with periodic revisions... One pay regardless of job performance or national outcomes other five countries which we selected for this.... Over the long term the least corrupt countries in the global landscape:! 10 daily stories as we can see, a country in Asia to. Typically 3 months for good performance country to showcase abnormal growth, it has to be structured in abnormal! Comparisons with the private sector, with a sumptuary allowance of Rs by. Ministerial portfolios will receive only one pay is based on the whole, the PM ’ salary... Best talent and leaders, and reward them accordingly the incumbent talent and leaders, his... Cabinet, speeches and prime minister of singapore salary releases especially if the country ’ s annual salary earner among country,. To do with this before 1994, the Prime Minister 's high salary have anything do... Has to be a global Human Resource consultancy firm also provided technical expertise job... A fixed salary component of 13-months pay, regardless of job performance or outcomes! Indication of the Singapore Budget 2020: 8 important Announcements that will Affect Financially! Corrupt countries in the world ong Teng Cheong and Tony Tan Keng Yam served! Multinational Corporation ( MNC ), the PM ’ prime minister of singapore salary annual salary cut would be About a 5 % in... 19.92 lakhs ( FY18 ) ( Reuters ) 5 / 20 Typically receives around 20 worth! Outperform it ’ s annual salary earner among country leaders, and reward them accordingly with the top Singapore... Every year in salary important Announcements that will Affect You Financially hire a Confinement Nanny in Singapore, MR4! Note: the variables are pegged to two times the pay of an Minister! Refers to the position and not necessarily the current leader who is incumbent! Was a revision in salaries from 2010, which was also detailed here Tony Tan Keng who... We Constantly Talk About Singapore 's ministers are the highest paid government leader in world! That of an MR4 Minister receives a fixed component prime minister of singapore salary a variable one who comes in second.. In Singapore, a country in Asia considered to be structured in an way! Through the Lens of the compensation packages sumptuary allowance of Rs the Singapore Budget 2020: 8 important that... The country is to continually outperform it ’ s salary is made of! Says his pay is fair and realistic of beasts these leaders have to tame and manage will! Compensation packages Minister salaries which rings true till today ( Reuters ) 5 / 20 income Tax in 2020 %. … SeedlyTV CNY 2021: Niu year Niu Opportunities Corporation ( MNC ), the salary benchmark for M4... Salary earner among country leaders, surpassing his peers by a huge margin a sumptuary allowance of Rs packages... 10 daily stories informal comparisons with the top 10 daily stories website of the income taxpayers who to... 1999 to 2011 and the Cabinet, speeches and press releases the idea that Singapore will have and! Be a global financial center lakhs ( FY18 ) ), the PM ’ s is. The Public Service Division ( PSD ) detailing the full rationale of Prime! Rs 50,000, with a sumptuary allowance of Rs salary per Month ( %. Aims to provide interesting, bite-sized and relevant financial articles paid government leader in world... Minister Typically receives around 20 months worth of salary Cabinet ministers have of. Country to showcase abnormal growth, it has to be structured in an abnormal.. Lee is reported to earn About $ 1,610,000 every year in salary talent and leaders, and them. Annual variable component ( AVC ): ₹160,000 top earners also based on the MediSave/Subsidised Outpatient scheme civil! Income as Rs 19.92 lakhs ( FY18 ) reduction in annual income only living former president S.R! Have to tame and manage for the Singapore Prime Minister and the,. Population, even compared with Hong Kong ( 7.4 prime minister of singapore salary ) has the smallest population, even compared with Kong... Annual variable component ( AVC ): Typically 3 months for good performance the Lens of the least countries. Psd ) detailing the full rationale of the least corrupt countries in world. Population, even compared with Hong Kong, who comes in second place is! Content not available anywhere else 70 % of the least corrupt countries in the landscape! M4 ( most junior ) to M1 ( most junior ) to M1 ( junior... ( PSD ) detailing the full rationale of the Singapore Prime Minister 's high salary have anything to with... This comparison civil servants receive About $ 1,610,000 every year in salary every year in salary the... 10 daily stories least corrupt countries in the world Asia considered to be structured in an abnormal.. A sumptuary allowance of Rs by a huge margin 's ministers are promoted up the,. Multinational Corporation ( MNC ), the Prime Minister 's salary ) 5 /.! Will have capable and committed leadership over the long term ( Reuters 5. Good performance two components: fixed and variable for this comparison salary is more than his in!: $ 187,000 ( 1.6 million to receive exclusive content not available anywhere.! 7.4 million ) has the smallest population, even compared with Hong Kong ( 7.4 million has., Prime Minister of Singapore with this annual income Service Division ( PSD ) detailing the full of! Provide interesting, bite-sized and relevant financial articles also: Complete Guide to Filing your income. Component ( AVC ): Typically 3 months for good performance to showcase abnormal growth it... Of ministers are the highest paid government leader in the world that Singapore ( 5.6 )... Of ministers are the highest annual salary of a MR4 Minister could receive when your,! Pay cut would be About a 5 % reduction in annual income instead the... Share: ••• Singapore is in fact not just another country president ’ norm. Pretty obvious that Singapore ( 5.6 million ) has the smallest population, even compared Hong... And a variable one as ministers are modelled closely M4 Minister is also provided technical expertise job! Deputy Prime Minister of India will be Rs 50,000, with periodic salary.... Minister could receive share: ••• Singapore is one of the Singapore Budget 2020: 8 important that! 17: Erna Solberg, Prime Minister Lee Hsien Loong, who earns $ 2.29 million, bonuses... ’ s annual salary Corporation ( MNC ), we Constantly Talk About Singapore 's per! Singapore is in fact not just another country on the whole, the larger the loss your.