Singapore’s median monthly household income rose to S$12,446 (US$9,250) in 2025, up from S$11,558 the year before, representing a 6.8% increase after adjusting for inflation.
After accounting for household size, median monthly household income per household member grew 7.5% in real terms to S$4,160, compared with S$3,837 in 2024, according to the Key Household Income Trends 2025 report released by the Singapore Department of Statistics (Singstat) on Monday (Feb 9).
Prime Minister Lawrence Wong said real wages have risen across all income levels over the past decade, with wage growth outpacing inflation for many households. He added that income growth has been strongest among lower-income workers, exceeding gains seen by middle- and higher-income groups.
From 2025, Singstat expanded its definition of household income to include “market income”, which covers income from both employment and non-employment sources. The revised data also includes households with no employed members.
Singstat said the change reflects Singapore’s ageing population, as more households comprise individuals aged 65 and above who may rely on income from investments, rentals and annuities rather than work. The expanded coverage allows for a more comprehensive analysis of income trends.
Non-employment income includes interest from savings and Central Provident Fund (CPF) balances, investment dividends, rental income, contributions from other households, and CPF or insurance payouts. Singstat noted that while most data is drawn from administrative sources such as CPF records, some income—particularly from investments or overseas assets—may be underreported as it relies on survey data.
The Ministry of Finance said this was the first release of market income data, reflecting rising affluence and a growing retiree population. Some underestimation is expected, especially among higher-income households with non-employment income that is harder to track.
Income growth across deciles
Households across all income deciles recorded growth in average monthly household income per member over the past decade. After adjusting for inflation, the lowest income decile saw a 10.5% increase over the past five years, compared with a 1.4% increase for the highest decile.
Singstat noted that some households in the lowest decile owned cars, employed domestic helpers, lived in private properties or had a household reference person aged 65 and above.
Employment income remained the largest source of household income, though its share declined to 79.6% in 2025 from 81.1% in 2024. While households in the second to 10th deciles relied mainly on income from work, those in the lowest decile depended largely on non-employment income.
For the lowest-income group, investment income—mainly interest from CPF balances—accounted for 40.9% of household income per member. Other income, largely from CPF payouts and the Lifelong Income for the Elderly (LIFE) scheme, made up 37%, while rental income contributed 3.2%. The remaining 19.2% came from employment.
Transfers, taxes and inequality
Households in the first to seventh income deciles received more in government transfers than they paid in taxes. In 2025, resident households received an average of S$7,300 per household member in government transfers, down from S$7,725 in 2024 due to the expiry of one-off support measures.
Residents living in one- and two-room HDB flats received the highest support, averaging S$16,519 per household member.
Prime Minister Wong, who is also Finance Minister, said lower-income households receive about S$7 in benefits for every dollar of tax paid, while middle-income households receive about S$2. The top 20% receive about S$0.20 per dollar of tax paid.
Singapore’s Gini coefficient, a measure of income inequality, fell to a record low. Based on the new definition of household market income, the coefficient declined to 0.452 in 2025 from 0.460 in 2024. After accounting for government transfers and taxes, it fell further to 0.379, the lowest level since records began in 2015.
MOF said the broader definition of income and household coverage affects the coefficient, but overall reflects a more comprehensive and accurate picture of income distribution in Singapore.
