Singapore's government announced it will increase 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 by S$1.4 million to S$3.6 million, an increase of more than 60% from his current S$2.2 million salary.
Wong stated that the pay raise is necessary to attract top talent to public service and that the government has historically argued that high ministerial salaries help deter corruption. He acknowledged that the salaries are substantially higher than what most citizens earn, noting that the median monthly income in Singapore is S$5,775. However, he expressed that the current pay structure makes it difficult to persuade business leaders and top civil servants to enter politics, and the aim is to "not make the financial hurdle unnecessarily high."
"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," Wong said.
The base pay package for ministers is set to increase from approximately S$1.1 million to around S$1.2 million, with the potential to reach S$1.35 million by the end of the current government term based on performance, which is linked to national targets for unemployment, income growth, and GDP growth.
The decision has sparked criticism within Singapore, where concerns about job security and the rising cost of living are prevalent. Online commentary expressed that the move was "tone deaf" amidst worries about retrenchments, graduate employment, and inflation. Retrenchments in Singapore recently reached their highest level in over five years.
Historically, high ministerial salaries have been a contentious issue for Singapore's ruling People's Action Party (PAP). In 2011, the party saw a reduced vote share partly attributed to public unhappiness over ministerial pay, leading to salary cuts the following year. Wong has pledged to donate his salary increase to charity over the next five years, a move echoed by his predecessor, Lee Hsien Loong, in 2007.
Supporters of the pay increase argue that it is necessary to ensure the country is led by "the best of the best." The government has consistently pointed to Singapore's low levels of corruption, as evidenced by its high ranking on Transparency International's Corruption Perceptions Index, as proof of the effectiveness of its high-pay system in reducing the temptation for bribes.
Before the increase, Wong's salary was already significantly higher than other global leaders. The chief executive of Hong Kong, John Lee, earns approximately $719,000 annually, followed by Switzerland's president Guy Parmelin with $606,000. For comparison, the U.S. president earns $400,000 a year, and the British Prime Minister earns $230,000.