CNA Explains: What goes into an MP’s allowance and what is it used for?
The monthly allowance for MPs will rise to S$18,500 from Oct 15. Here’s a breakdown of who gets what and why.
MPs being sworn in at the opening of Singapore’s 15th Parliament.
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SINGAPORE: Changes to the allowances of all Members of Parliament (MPs) accompanied revisions to political office holders’ salaries announced on Tuesday (Sep 8).
Like ministerial salaries, this is the first change in MP allowance since 2011. The changes follow recommendations from an independent committee reviewing political salaries and MP allowances.
Prime Minister Lawrence Wong told parliament that the allowance is not a token sum, but a substantial amount that lets them carry out their responsibilities in parliament and in their constituencies.
Coordinating Minister for Public Services Chan Chun Sing said the increase to MP allowances will cost the government about S$6.6 million (US$5.2 million) more a year.
The independent review committee also noted that considerations for community-related roles, including MPs, may differ from those for full-time political appointment holders. It recommended that the government study delinking MP allowances from political salary benchmarks.
What goes into an MP’s allowance?
An MP’s monthly allowance is currently S$13,750, and will increase to S$18,500 on Oct 15.
The allowance is subject to Central Provident Fund contributions and tax deductions. MPs also contribute a portion of their allowance to their political party.
MPs do not receive pensions. Their medical benefits fall under the Medisave-cum-Subsidised Outpatient scheme, aligned with the public service.
Who receives the allowance?
Elected MPs who entered parliament by winning a General Election receive the full allowance.
MPs who hold ministerial or other political office receive the allowance too, on top of their full-time roles running the day-to-day affairs of the state.
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What about NCMPs and NMPs?
Allowances for Non-Constituency MPs (NCMPs) will rise from 15 per cent of an MP’s annual allowance to 30 per cent, or S$5,550 a month.
Mr Chan said this reflects the conferment of full voting rights to NCMPs since 2017, and brings their allowance into better alignment with their parliamentary responsibilities.
Nominated MPs will keep their existing peg of 15 per cent of an MP’s allowance.
The Leader of the Opposition, currently a vacant position, will continue to receive double an MP’s allowance, raising the role’s annual allowance from S$385,000 to S$518,000.
What is the allowance used for?
The allowance helps MPs perform community-based and legislative functions, including looking after the needs of their constituents and raising their concerns in parliament.
“Fulfilling these duties well requires strong commitment and hard work from an MP,” the independent review committee said in its report.
The allowance typically goes towards expenses incurred in discharging MP duties. This includes transport costs for grassroots events, attending parliamentary committee sessions and official briefings.
It also covers less visible costs such as buying food and refreshments for volunteers or giving “bai jin” – condolence money – at wakes within the constituency. MPs with smaller networks of grassroots supporters may rely on the allowance more heavily to fund such activities.
MPs are paid an allowance for the time and expenses incurred in carrying out these roles. Most serve on a part-time basis, letting them bring experience from other fields into parliamentary debate.
Why is an allowance increase necessary?
Mr Chan, who delivered a ministerial statement in parliament after Mr Wong on Tuesday, said the increase was to account for inflation.
Mr Wong said providing a proper allowance has enabled both the People’s Action Party and the Workers’ Party to recruit and field strong candidates.
“We can see the result in this House. We have MPs with a wide range of backgrounds and experience, who bring different perspectives to our debates,” he said.
“We may disagree strongly across the aisle, but the quality of debate is high, and Singapore is better for it.”
Want an issue or topic explained? Email us at digitalnews [at] mediacorp.com.sg. Your question might become a story on our site.
Source: CNA/cy
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