Singapore’s Median Monthly Household Income Surpasses $10,000 for Second Consecutive Year
The Singapore Department of Statistics (SingStat) has released data revealing that the median income from work for households in Singapore exceeded $10,000 for the second consecutive year in 2023. The figure, which applies to resident employed households, saw a 7.6% increase from the previous year, reaching $10,869. The data sheds light on the economic well-being of households, considering changes in household purchasing power.
Key Findings:
- Income Growth: The median monthly income from work per household member rose by 6.5% in nominal terms to $3,500 in 2023. This growth, while substantial, was slower compared to the 8.6% increase recorded in 2022.
- Real Income Growth: After adjusting for inflation, the real median monthly income per household member increased by 1.7% in 2023, reflecting a slightly slower pace compared to the 2.6% growth in 2022.
- Income Distribution Among Deciles:
- In 2023, income growth across the 10 income groups (deciles) ranged from 2.5% to 6.8% in nominal terms.
- The first decile, representing the lowest household incomes, experienced the slowest growth at 2.5%, with incomes falling by 1.7% after accounting for inflation.
- The highest-income group (tenth decile) saw a 3.1% increase in average nominal household income per household member. However, after adjusting for inflation, this group experienced the largest income drop among all deciles.
- Government Transfers and Taxes: To mitigate the impact of rising living costs, the Singaporean government increased support measures in 2023. Average annual government transfers per household member rose by 8.7% to $6,371 in 2023.
- Income Inequality (Gini Coefficient):
- The Gini coefficient, a measure of income inequality, fell for the third consecutive year to 0.433 in 2023 (before accounting for government transfers and taxes).
- After adjusting for government transfers and taxes, the Gini coefficient further decreased to 0.371 in 2023, indicating a narrowing of income inequality.
Singapore’s household income landscape continues to show positive growth, with the median monthly income surpassing $10,000 for the second year. While income growth was slower on a per household member basis, government support measures contributed to a reduction in income inequality. The data provides valuable insights into the economic well-being of households and the effectiveness of policy interventions in mitigating economic challenges.
