SINGAPORE: Household income inequality here last year was at its lowest in almost two decades as median household income grew to S$9,425, according to figures released on Thursday (Feb 20) by the Singapore Department of Statistics (SingStat).
SingStat’s annual Key Household Income Trends report for 2019 showed the Gini coefficient, based on household income from work per household, stood at 0.452 last year, compared to 0.458 in 2018. This is the lowest value since 2001.
AdvertisementAdvertisementThe Gini coefficient measures income inequality on a scale of zero to one, with zero representing total income equality and one representing total inequality.
To measure income inequality, Singapore uses a modified version of the Organisation of Economic Co-operation and Development (OECD) scale, which is also used by the European Commission as well as countries such as Britain and Australia.
SingStat noted that the coefficient would fall even further to 0.398 if adjusted for Government transfers - which includes schemes such as Workfare and GST credits.
This reflects the “redistributive effect of Government transfers”, the national statistical office said.
AdvertisementAdvertisementIt reported that resident households here, including those with no working members, received an average of S$4,682 per member from various Government schemes last year.
“Resident households in HDB one and two room flats received S$10,548 per household member on average, which was more than double the transfers received by resident households staying in other dwelling types,” SingStat said in a release.
MEDIAN HOUSEHOLD INCOME ROSE
The SingStat report also said median household income from work among resident employed households - households with a Singapore citizen or permanent resident and at least one working member - grew 1 per cent in real terms, from S$9,293 in 2018 to S$9,425 last year.
Household income from work refers to the sum of income from employment and business - including employer Central Provident Fund (CPF) contributions - received by all working members of the household.
“Over the last five years, from 2014 to 2019, median monthly household income from work of resident employed households increased by 13 per cent cumulatively, or 2.5 per cent per annum in real terms,” SingStat said.
Taking into account household size, the median monthly household income from work per household member rose from S$2,792 in 2018 to S$2,925 last year, a 4.3 per cent growth.
Between 2014 and 2019, the median monthly income per household member grew by 22.2 per cent cumulatively, a 4.1 per cent per annum growth in real terms.
Meanwhile, resident employed households across all income groups saw real growth in average household income from each member last year, in line with trends over the last five years.
Households in the first to 90th percentiles registered growth of between 3.5 and 5.6 per cent, while those in the top 10 per cent saw growth of 0.4 per cent.
Between 2014 and 2019, households in the first to 90th percentiles registered growth of between 3.9 and 4.5 per cent per annum, while those in the top 10 per cent income group saw growth of 2.5 per cent per annum.
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