Inflation partially erodes Singaporeans' wage gains, but recovery still ongoing

Wages expected to continue growing, but bulk of increases could be eroded by rising consumer prices

Megan Cheah

Published Wed, Feb 16, 2022 · 05:50 AM

Singapore economy

Singapore

THE median household income from work is now higher than pre-pandemic levels, as wages bounced back in 2021 from the previous year's decline, according to the latest figures from the Department of Statistics (SingStat).

Wages are also expected to continue growing in 2022, observers have told The Business Times - although the bulk of the gains could still be eroded by rising consumer prices.

Households' median monthly income stood at S$9,520 in 2021 - up by 3.6 per cent in nominal terms on S$9,189 in the year prior, and also higher than the S$9,425 recorded in 2019, SingStat said in the Key Household Income Trends 2021 report released on Tuesday (Feb 15).

But, with inflation taken into account, household income grew 1.5 per cent in real terms year on year. That's as full-year inflation spiked to 2.3 per cent in 2021, reversing the…