Income Growth Shows Improvement, but Inequality Remains a Concern
Singapore’s median monthly household income from work increased by 2.8% in real terms in 2023, marking an improvement from the 0.2% growth recorded in 2022, according to data from the Singapore Department of Statistics (SingStat).
In nominal terms, median monthly household income grew 7.6%, rising from S$10,099 in 2022 to S$10,869 in 2023. However, growth was lower when adjusted for household size, with median income per household member increasing by 1.7% in real terms to S$3,500.
Income Growth and Inequality Trends
While most income groups saw gains, households in the 1st, 9th, and 10th deciles experienced declines in real terms, with the top income decile dropping by 1.9%. Over the period from 2018 to 2023, income per household member in the first nine deciles grew between 0.7% and 2.5% per year, while the top decile saw an annual decline of 1.2%.
Despite the increase in income levels, income inequality continued to decline, as reflected by the Gini coefficient, which fell from 0.437 in 2022 to 0.433 in 2023. When accounting for government transfers and taxes, the coefficient dropped further to 0.371, reaching its lowest recorded level.
Government Support and Economic Outlook
To cushion the impact of high inflation and GST hikes, the government increased financial support for households in 2023. On average, each household member received S$6,371 in government transfers, up from S$5,859 in 2022. The highest benefits were provided to residents in one- and two-room flats, who received an average of S$13,623 per household member.
While household income saw overall improvements, industry analysts warn of a potential slowdown in wage growth in 2024, driven by weaker labour demand and softer economic activity. As Singapore navigates these challenges, continued support measures and economic policies will play a key role in maintaining income stability.
