Median monthly household income in Singapore above $10k in 2023, up 2.8% in real terms

Median monthly household income in Singapore above $10k in 2023, up 2.8% in real terms
For each household member, the median monthly income from work grew by 6.5 per cent in nominal terms from $3,287 in 2022 to $3,500 in 2023.
PHOTO: The Straits Times

SINGAPORE — The median monthly income from work for Singapore households was above $10,000 for the second year in a row in 2023.

The median monthly income grew by 7.6 per cent in nominal terms from $10,099 in 2022 to $10,869 in 2023, according to data released by the Singapore Department of Statistics (SingStat) on Feb 7.

Nominal income refers to the amount of money earned without considering the effects of inflation.

After adjusting for inflation, the median monthly household income rose 2.8 per cent in real terms in 2023.

Before and after adjusting for inflation, the pace of growth in monthly household incomes from work, which includes employer contributions to the Central Provident Fund, was faster in 2023 than in 2022, at 6.1 per cent in nominal terms and 0.2 per cent in real terms.

On a per household member basis, however, the pace of income growth slowed in 2023.

For each household member, the median monthly income from work grew by 6.5 per cent in nominal terms from $3,287 in 2022 to $3,500 in 2023.

That is slower than the 8.6 per cent growth in nominal income recorded in 2022 from 2021, which was $3,027.

In real terms, median monthly household income rose 1.7 per cent in 2023 per household member, slower than the 2.6 per cent increase in 2022.

The average monthly household income from work per household member provides insights into the income distribution within households, accounting for differences in household size. This helps in understanding the economic well-being of individuals within a household more accurately.

In 2023, this measure rose between 2.5 per cent and 6.8 per cent in nominal terms across 10 income groups, according to a SingStat analysis.

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All resident employed households were ranked from the lowest to the highest based on monthly household incomes per household member. They were then divided into 10 equal groups, or deciles.

The first decile, which represented the lowest 10 per cent of households in terms of their income, saw the slowest average nominal income growth per member at just 2.5 per cent to $706. In real terms, after taking into account inflation, their income also declined, falling 1.7 per cent.

SingStat noted that some resident employed households in the lowest 10 per cent income decile owned a car (16 per cent), employed a domestic worker (14.7 per cent), lived in private property (eight?per cent) or had household members aged 65 years and above (36.6 per cent) in 2023.?

Meanwhile, the highest ninth and 10th deciles saw average nominal household incomes per member grow 4.9 per cent to $7,862 and 3.1 per cent to $14,803, respectively.

The 10th decile, or households with the highest median income, saw the biggest drop in real household income among all deciles, falling by 1.9 per cent in 2023 compared with 2022.

To cushion the impact on households from rising costs of living and the increase in the goods and services tax to nine?per cent, the Government rolled out more support measures in 2023.

Average annual government transfers per household member rose across all dwelling types, from one-room public housing flats to private property.

Resident households, including households with no employed people, received $6,371 per household member on average from government schemes in 2023, up 8.7 per cent from the $5,859 received in 2022.

Those living in one- and two-room public housing flats continued to receive the most government transfers in 2023.

They received $13,623 per household member on average from government schemes, about two times what their peers in four-room and five-room/executive flats received.

As a result, income inequality among households continued to narrow.

The Gini coefficient in Singapore, which is a summary measure of income inequality, fell for the third consecutive year.

The number zero indicates total income equality, and the number one reflects total inequality.

The Gini coefficient based on household income from work per household member fell to 0.433 in 2023 from 0.437 in 2022, before accounting for government transfers and taxes.

After adjusting for government transfers and taxes, the Gini coefficient fell further to 0.371 in 2023.

ALSO READ:?Singapore keeps monetary policy unchanged as inflation slows

This article was first published in The Straits Times. Permission required for reproduction.

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