Compared to countries in the region and even developed cities globally, Singapore is typically seen as a rich and expensive country. In fact, the Economist Intelligence Unit (EIU) recently placed Singapore as the most expensive city in the world.
As a result, our GDP per capita – defined as the gross domestic output per person – tends to be high too. In 2022, the GDP per capita in Singapore was $114,165. Breaking this down simplistically, our GDP per capita translates into a monthly output of nearly $9,514.75 per month per person in Singapore. This includes even those not working (i.e. too old or young to work, unable to work or unemployed), so the actual output per working person may be much higher.
However, we don’t expect to earn this amount as individuals.
What Is The Average Monthly Household Income In Singapore?
In Singapore, the average monthly household income from work was $13,124 in 2022 – according to the Department of Statistics Singapore. While this may seem like a high number, we should not get our hopes up or feel down if we aren’t achieving this figure yet. Besides, this figure is for household income, and not for an individual’s income.
By its definition, this figure can also be skewed by very high earners in Singapore. The median monthly household income from work was only $10,099 in 2022.
Secondly, the average monthly household income differs quite greatly between families who live in HDB flats and those who live in private properties.
| Monthly Household Income by Type of Dwelling ($) | ||
| 2021 | 2022 | |
| Average | $12,276 | $13,124 |
| 1- & 2-Room HDB Flat | $3,174 | $3,588 |
| 3-Room HDB Flat | $6,894 | $7,189 |
| 4-Room HDB Flat | $9,771 | $10,385 |
| 5-Room & Executive HDB Flat | $13,136 | $13,814 |
| Condominiums and Other Apartments | $19,935 | $21,497 |
| Landed Properties | $25,425 | $26,659 |
Source: Department of Statistics Singapore
Naturally, those who live in bigger HDB flats or private properties also tend to earn a larger household income.
Of course, average household income also corresponds to the number of persons living in our home. The more working household members, the greater our household income. If we have five household members (for example, father, mother, and three adult children) in a condominium, all working and earning $4,500 each, we would have a household income of over $22,500. However, this doesn’t mean we are richer or better off than a single person who bought their own 4-room flat and earns $9,000 a month.
What we should pay closer attention to is the average monthly household income per household member. This number was $4,478 in 2022 (for resident employed households in Singapore), an increase of about 7.5% from 2021.
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How Do You Stand Against Other Households In Singapore?
To understand where we stand is to look at which decile we fall into.
| Average Monthly Household Income per Household Member | ||
| 2021 | 2022 | |
| Average | $12,276 | $13,124 |
| Quintiles | Average Monthly Household Income | |
| 1st – 10th | $596 | $689 |
| 11th – 20th | $1,224 | $1,347 |
| 21st – 30th | $1,712 | $1,864 |
| 31st – 40th | $2,211 | $2,400 |
| 41st – 50th | $2,749 | $2,976 |
| 51st – 60th | $3,347 | $3,634 |
| 61st – 70th | $4,111 | $4,447 |
| 71st – 80th | $5,144 | $5,578 |
| 81st – 90th | $6,944 | $7,493 |
| 91st – 100th | $13,626 | $14,354 |
The lowest 10% of households saw household members earning just $689 per month. As we pointed out earlier, the highest earners also skew the statistics, as the top 10% of income earners have pay packets worth nearly double the next highest 10% of income earners ($14,354 v $7,493).
How Much Did Our Average Monthly Household Income Grow?
It’s also good to see if there has been positive wage growth. Overall, the average household income in 2022 was $13,124, which is higher compared to 2021 – which in turn is higher than 2020 figures.
| Average Monthly Household Income From Work by Type of Dwelling ($) (y-o-y % change) |
|||
| 2020 | 2021 | 2022 | |
| Average | $12,235 | $12,276 (0.3%) |
$13,124 (6.9%) |
| 1- & 2-Room HDB Flat | $2,997 | $3,174 (5.9%) |
$3,588 (13.0%) |
| 3-Room HDB Flat | $6,442 | $6,894 (7.0%) |
$7,189 (4.3%) |
| 4-Room HDB Flat | $9,414 | $9,771 (3.8%) |
$10,385 (6.3%) |
| 5-Room & Executive HDB Flat | $12,723 | $13,136 (3.2%) |
$13,814 (5.2%) |
| Condominiums and Other Apartments | $20,732 | $19,935 (-3.8%) |
$21,497 (7.8%) |
| Landed Properties | $27,838 | $25,425 (-8.7%) |
$26,659 (5.1%) |
It is heartening to see higher average income gains came from smaller (and typically lower-income households). All households saw positive income growth in 2022, while in 2021, those living in private properties saw their average income fall.
While this is interesting, we should also look at longer time frames to determine if we are headed in the right direction.
| Average Monthly Household Income From Work by Type of Dwelling ($) | |||
| 2002 | 2012 | 2022 | |
| Average | $6,229 | $10,348 | $13,124 |
| 1- & 2-Room HDB Flat | $1,742 | $2,233 | $3,588 |
| 3-Room HDB Flat | $3,546 | $5,512 | $7,189 |
| 4-Room HDB Flat | $4,695 | $7,626 | $10,385 |
| 5-Room & Executive HDB Flat | $7,182 | $10,735 | $13,814 |
| Condominiums and Other Apartments | $13,325 | $19,026 | $21,497 |
| Landed Properties | $14,688 | $25,419 | $26,659 |
As expected, all households have benefited from decent income growth in the past 10- and 20-year periods. Those living in 1- & 2-Room HDB Flats have seen their income more than double since 2002 and rise by 61% since 2012. In contrast, the top income earners have only seen their income go up by 82% and 5% in the same time frame.
Of course, the highest income earners are already starting off from a much higher base, and their income growth far outpaces others in actual dollar terms.
Nevertheless, seeing the lower-income earners outpace the top-income earners in percentage terms is still a step in the right direction.
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How Come Our Salaries From Work May Not Match Up?
If we simply look at the headline $13,124 income that average households in Singapore earn, we may have an unrealistic point of view. For starters, we are neglecting a likely significant source of income for wealthier households – income not from work but from business and investments.
As mentioned, we also need to be mindful of the number of working persons in our households. If we have more people working, we may look like we’re better off than the average even when it may not be the case at all. Similarly, if we have only a single income earner in a smaller household, we may actually be better off than the average. Our own circumstances are also a function of our choices (whether one spouse wants to be a stay-home parent) as well as circumstance.
Another measure that we can compare ourselves to is the median income reported by the Ministry of Manpower (MOM). Singapore’s median income in 2022 was $5,070.
For many of us, there will typically be two working adults (ourselves and our spouse) in our households. In fact, the average number of working household members in resident employed households in 2020 was 1.93 – which points to a married couple – with just a fraction deciding that one spouse not work. The average household size among resident employed households in 2020 was 3.32 – which can also be read as having about 1 to 2 dependants (either children or elderly parents).
Read Also: Complete Guide To Employer CPF Contributions In Singapore
This article was originally published on 7 October 2020 and updated to reflect the latest information.
The post What is Singapore’s Average Household Income And Why It Is Different From The Salaries We Earn? appeared first on DollarsAndSense.sg.
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