Lentor Collection

Crowded Showflat at The Reserve Residences

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.

The Straits Times Household Income Increase
The Straits Times Household Income Increase

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.
US Fed flags end of rate hikes, sees drop in borrowing costs in 2024
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.

The Straits Times

error:
Scroll to Top