Singapore has upheld its distinctive policy of aligning politicians’ salaries with those of top business executives, despite occasional public criticism, with Prime Minister Lawrence Wong recently receiving a notable pay increase. Wong’s total annual package now stands at S$3.6 million (approximately US$2.8 million), a figure roughly seven times higher than the salary of former U.S. President Donald Trump.

This approach to political compensation was first introduced in 1994 under the leadership of Lee Kuan Yew, Singapore’s founding prime minister. The system was designed to ensure that government leaders remain competitive with leading private sector firms, thereby attracting and retaining top talent. The policy has served as a mechanism to guard against corruption and has generally sustained public approval, though it has occasionally met resistance during periods of economic strain.

The pay structure for politicians in Singapore is linked to a complex formula that benchmarks salaries against the earnings of the country’s highest-paid professionals. Specifically, junior ministers’ salaries are calculated based on the median income of the top 1,000 earners in Singapore, which includes notable executives such as Tan Su Shan, CEO of DBS Bank, and Goh Choon Phong, CEO of Singapore Airlines, both of whom earned close to S$10 million last year. Following the latest adjustments, the benchmark for junior ministers’ pay increased from S$1.1 million to S$1.8 million, although actual salary increases were capped at 9 percent this year, resulting in a rise to S$1.2 million.

Compensation for higher-ranking officials is scaled accordingly. The prime minister’s pay is set at twice the junior minister’s amount. Therefore, with the updated figures, Wong’s remuneration package grew from S$2.2 million to S$3.6 million. Parliamentary secretaries receive 45 percent of the junior minister wage, currently amounting to a benchmark of S$810,000.

The prime minister’s compensation includes a fixed base salary making up 65 percent of the total amount, alongside a variable component of 35 percent. The variable portion consists of an individual performance bonus and a national bonus, which is linked to economic indicators such as employment rates, real income growth, and GDP expansion.

According to Shai Ganu of consulting firm Willis Towers Watson, without a 40 percent discount applied to reflect the financial sacrifice of public service, Wong’s earnings would align closely with the remuneration of CEOs from Singapore’s 50 largest listed companies. Ganu noted that while the structure aligns to private sector incentive models, the delivery differs: politicians receive bonuses in cash, whereas corporate leaders typically obtain equity-based, longer-term incentives. He suggested that Singapore might consider introducing long-term bonus payments in the form of government bonds.

Unlike typical executive compensation, political salaries in Singapore come without additional perks such as official residences, personal chauffeurs—except during official visits for the prime minister—or pensions.

Wong justified the policy after the pay raise was announced, stating that public office involves considerable personal and professional sacrifice. He pledged to donate his salary increase to charity for the next five years, emphasizing the need to compensate officials fairly so they do not face undue financial hardship when entering politics.