SINGAPORE’S median monthly household income from work grew 2.8 per cent in real terms in 2023 for resident employed households, an improvement from 2022’s real growth of 0.2 per cent, data from the Singapore Department of Statistics (SingStat) showed on Wednesday (Feb 7).

This is in contrast to a separate set of data from the Ministry of Manpower, which showed that median wages fell by 2.2 per cent in real terms last year.

In nominal terms, median monthly household income from work rose by 7.6 per cent in 2023, up from 6.1 per cent in 2022. The median monthly income from work was S$10,869 for resident employed households, up from S$10,099 in 2022.

From 2018 to 2023, median monthly household income from work of resident employed households increased 3.1 per cent cumulatively, or 0.6 per cent per annum in real terms.

Growth rates were lower after accounting for household size. The median monthly household income per household member rose to S$3,500, from S$3,287 before – a growth of 6.5 per cent in nominal terms or 1.7 per cent in real terms.

In 2023, the average household income from work per household member among resident employed households rose by between 2.5 and 6.8 per cent across income deciles, in nominal terms.

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Households in most income deciles experienced increases in their average household income per household member in real terms, except for those in the 1st, 9th and 10th deciles – these income deciles recorded declines of 1.7 per cent, 0.2 per cent and 1.9 per cent respectively.

In real terms, the average household income per household member of resident employed households in the first nine deciles rose 0.7 to 2.5 per cent per annum between 2018 and 2023 (See *Amendment note) , while households in the top decile declined 1.2 per cent per annum.

Household income inequality continued to fall in 2023, even before accounting for government transfers and taxes, said SingStat.

The Gini coefficient, which measures income inequality, dipped to 0.433 last year, from 0.437 in 2022. Zero represents complete income equality and one represents complete inequality.

After taking government transfers and taxes into account, the Gini coefficient decreased to 0.371 last year, less than 0.378 in 2022. The lowest previously was 0.375 in 2020.

Nevertheless, the fall reflected the redistributive effect of government transfers and taxes, said SingStat.

Households received more government transfers last year, compared to in 2022, noted Singstat. Resident households, including those with no employed person, received S$6,371 per household member on average in 2023, up from the S$5,859 received in 2022.

This was due to the enhanced and additional transitory support measures rolled out last year to support households during the period of high inflation and to cushion the impact of the increase in the GST rate.

Resident households in Housing and Development Board one- and two-room flats continued to receive the most government transfers.

In 2023, they received S$13,623 per household member on average from government schemes, close to double the transfers received by resident households in three-room flats.

*Amendment note: An earlier version of the article did not clearly state that the per annum increase was for the period of between 2018 and 2023. The article has been edited for clarity.