Singapore's household incomes rose in 2018 and income inequality remained stable

SINGAPORE: Singaporean households' labor income rose in 2018, while income inequality in Singapore remained at its lowest level in a decade, according to official data released on Wednesday (13 February).

Among households headed by a Singaporean citizen or permanent resident with at least one person working, the median monthly income increased by 3% in nominal terms to reach S $ 9,293 against $ 9,023 in 2017.

Taking into account inflation, the increase was 2.6% in real terms, revealed the report Key Trends on Income Income Trends published by the Department of Statistics of Singapore.

After taking into account household size, the median monthly income from work per household member rose 3.4% in nominal terms, or 3% in real terms, to reach S $ 2792 in 2018.

The annual report indicates that households of all income groups experienced real growth in average labor income per member in 2018.

Households in the income group between the first and the 70th percentile experienced real growth of 2.5% to 3.4%. People in the 71st to 90th percentile income groups benefited from 4% higher real growth, the report said.

Households in the richest 10% recorded real growth of 2.3%.

INEQUALITY OF STABLE INCOME

For 2018, the Singapore Gini coefficient – which measures income inequality as a ratio of 0 to 1, 0 representing total income equality – was 0.458.

This remains one of the lowest levels in a decade, with the Gini coefficient setting at 0.459 in 2017 and 0.458 in 2016.

After taking into account government transfers and taxes, the Gini coefficient for 2018 fell to 0.404.

Families who reported in one- and two-bedroom HDB apartments received an average of S $ 10,347 per household member, more than double the transfers compared to other types of housing.

Resident households, including those without people who work, received S $ 4,494 per household member, on average, under various public programs last year.