3. Key Household Income Trends, 2010
I Introduction
1 This paper highlights the key trends in household income from work 1 in
2010. The paper also presents the impact of the various government schemes on
household income in 2010.
II Household Income Growth
Household Income Increased in Tandem with Strong Economic Growth
2 Household income from work in 2010 increased in tandem with strong
economic growth. Median monthly household income from work in 2010
recovered to above the level before the economic downturn in 2009.
3 Among resident households 2 , median monthly income from work
increased by 3.1 per cent from $4,850 in 2009 to $5,000 in 2010 (Table 1); in
real terms, the increase was 0.3 per cent3.
Table 1 Monthly Household Income from Work Among Resident Households
Median Household Income Average Household Income
Year Nominal Real Nominal Real
Dollar Dollar
Change (%) Change (%) Change (%) Change (%)
2000 3,638 3.9 2.6 4,988 5.7 4.2
2001 3,860 6.1 5.0 5,338 7.0 5.9
2002 3,628 -6.0 -5.6 5,069 -5.0 -4.7
2003 3,601 -0.7 -1.2 5,075 0.1 -0.4
2004 3,689 2.4 0.8 5,194 2.3 0.7
2005 3,860 4.6 4.1 5,447 4.9 4.4
2006 4,000 3.6 2.6 5,715 4.9 3.9
2007 4,375 9.4 7.1 6,295 10.1 7.9
2008 4,946 13.1 6.0 7,086 12.6 5.6
2009 4,850 -1.9 -2.5 6,826 -3.7 -4.2
2010 5,000 3.1 0.3 7,214 5.7 2.8
1
Household income from work refers to the sum of income received by all working members of the
household from employment and business but excludes the income of maids.
For statistical purposes, a household refers to a group of persons living in the same dwelling unit and
sharing common living arrangements. A household may comprise related or unrelated members.
2
Resident households refer to households headed by Singapore citizens or permanent residents.
3
The Consumer Price Index (CPI) is used as a deflator to compute real income changes in this paper.
1
4. 4 Among employed households (households with at least one working
person), median monthly income from work increased by 5.7 per cent in
nominal terms (from $5,400 in 2009 to $5,700 in 2010) and 2.8 per cent in real
terms (Table 2).
Table 2 Monthly Household Income from Work Among Employed Households
Median Household Income Average Household Income
Year Nominal Real Nominal Real
Dollar Dollar
Change (%) Change (%) Change (%) Change (%)
2000 4,000 5.3 3.9 5,456 7.0 5.6
2001 4,141 3.5 2.5 5,736 5.1 4.1
2002 4,038 -2.5 -2.1 5,572 -2.9 -2.5
2003 4,050 0.3 -0.2 5,618 0.8 0.3
2004 4,106 1.4 -0.3 5,761 2.5 0.9
2005 4,345 5.8 5.3 6,052 5.1 4.6
2006 4,495 3.5 2.5 6,280 3.8 2.8
2007 4,883 8.6 6.4 6,889 9.7 7.4
2008 5,475 12.1 5.2 7,752 12.5 5.5
2009 5,398 -1.4 -2.0 7,549 -2.6 -3.2
2010 5,704 5.7 2.8 8,058 6.7 3.8
Highest Household Income Growth Among Smaller Housing Types
5 Median monthly household income from work increased by 10 per cent
(7.0 per cent in real terms) among employed households living in HDB 1- and
2-room flats, 6.5 per cent (3.6 per cent in real terms) among HDB 3-room flats,
5.3 per cent (2.4 per cent in real terms) among HDB 4-room or larger flats, and
3.0 per cent (0.2 per cent in real terms) among employed households living in
private properties (Table 3).
2
5. Table 3 Median Monthly Household Income from Work Among Employed Households by Housing Types
Median Monthly Household Income
Distribution
Nominal Real by Housing
Dollar
Change (%) Change (%) Types, 2010
2008- 2009- 2008- 2009- (%)
2008 2009 2010
2009 2010 2009 2010
Total 5,475 5,398 5,704 -1.4 5.7 -2.0 2.8 100.0
HDB 1- & 2- Room 1,190 1,091 1,200 -8.3 10.0 -8.9 7.0 3.2
HDB 3-Room 3,230 3,193 3,401 -1.1 6.5 -1.7 3.6 18.8
HDB 4-Room or Larger 5,599 5,556 5,850 -0.8 5.3 -1.3 2.4 60.0
Private Flats, Condominiums
12,568 12,502 12,877 -0.5 3.0 -1.1 0.2 17.0
or Private Houses
Increase in Household Income for All Income Groups
6 For the following analysis on household income by income groups, all
employed households were ranked by their monthly household income from
work per household member in ascending order and divided into ten equal
groups or deciles4.
7 Employed households enjoyed real income growth across all groups in
2010. Employed households in the 11th – 50th percentiles experienced the
highest increase in real terms, ranging from 5.4 – 7.5 per cent, followed by 4.9
per cent by the lowest 10% and 4.1 per cent by the top 10% (Table 4).
Employed households in the 51st – 90th percentiles saw their average monthly
household income from work increase by 1.2 – 3.5 per cent in real terms.
4
Since the household income data cover only income from work, employed households are used in the
analysis of income of households in different income groups. Households with no working person could
have income from non-work sources.
3
6. Table 4 Average Monthly Household Income from Work
Among Employed Households by Deciles
Nominal Real
2008 2009 2010 Annual Change (%) Annual Change (%)
Deciles
($) ($) ($)
2008 2009 2010 2008 2009 2010
Total 7,752 7,549 8,058 12.5 -2.6 6.7 5.5 -3.2 3.8
1st - 10th 1,312 1,303 1,400 7.5 -0.7 7.4 -0.3 -2.8 4.9
11th - 20th 2,479 2,459 2,681 10.8 -0.8 9.0 2.8 -2.9 6.4
21st - 30th 3,425 3,472 3,757 12.7 1.4 8.2 5.8 0.5 5.4
31st - 40th 4,426 4,424 4,886 11.4 0.0 10.4 4.5 -0.9 7.5
41st - 50th 5,456 5,354 5,888 11.3 -1.9 10.0 4.4 -2.7 7.1
51st - 60th 6,732 6,599 7,016 14.4 -2.0 6.3 7.4 -2.8 3.5
61st - 70th 8,038 7,969 8,358 12.6 -0.9 4.9 5.7 -1.7 2.1
71st - 80th 9,720 9,559 10,095 11.4 -1.7 5.6 4.6 -2.5 2.8
81st - 90th 12,914 12,290 12,818 14.0 -4.8 4.3 7.4 -4.7 1.2
91st - 100th 23,023 22,062 23,684 12.6 -4.2 7.4 6.1 -4.0 4.1
8 To account for the change in household size over time, household income
from work is divided by the total number of members in the household to derive
the household income per household member.
9 Average monthly household income from work per household member
increased in real terms by more than 3.0 per cent for all income groups (Table
5). The increase was bigger for employed households in the 11th – 40th
percentile and the top 10%, ranging from 5.0 to 5.3 per cent in real terms in
2010. Among employed households in the 41st – 90th percentile and the lowest
10%, the increase ranged from 3.4 to 4.3 per cent in real terms.
4
7. Table 5 Average Monthly Household Income from Work Per Household Member
Among Employed Households by Deciles
Nominal Real
2008 2009 2010 Annual Change (%) Annual Change (%)
Deciles
($) ($) ($)
2008 2009 2010 2008 2009 2010
Total 2,382 2,326 2,500 9.9 -2.4 7.5 3.1 -2.9 4.5
1st - 10th 340 334 354 9.3 -1.8 6.0 1.4 -3.8 3.5
11th - 20th 630 626 675 10.5 -0.6 7.8 2.5 -2.7 5.3
21st - 30th 883 872 940 11.8 -1.2 7.8 4.9 -2.1 5.0
31st- 40th 1,141 1,122 1,210 12.2 -1.7 7.8 5.3 -2.5 5.0
41st - 50th 1,424 1,409 1,506 12.2 -1.1 6.9 5.3 -1.9 4.1
51st - 60th 1,761 1,739 1,853 12.2 -1.2 6.6 5.3 -2.1 3.7
61st - 70th 2,209 2,164 2,298 12.1 -2.0 6.2 5.2 -2.9 3.4
71st - 80th 2,831 2,759 2,937 11.6 -2.5 6.5 4.8 -3.4 3.6
81st - 90th 3,904 3,770 4,055 11.4 -3.4 7.6 4.9 -3.3 4.3
91st - 100th 8,700 8,463 9,174 6.9 -2.7 8.4 0.7 -2.6 5.1
III Government Benefits Received by Households
10 Over the years, Singapore has introduced various schemes such as GST
Credits, Senior Citizen Bonus and rebates on utilities, rental and service and
conservancy charges.
11 On average, the various government schemes added $1,110 per
household member to resident households in 2010 (Table 6). The various
government schemes gave a larger boost to those staying in smaller housing
types. Resident households in HDB 1- and 2-room flats received an average of
$2,650 per household member while resident households in HDB 3-room flats
received an average of $1,480 per household member. This was higher than the
$530 per household member for households in private properties.
5
8. Table 6 Average Annual Household Income from Work and Government Benefits1, 2 Received
Per Household Member Among Resident Households by Housing Types, 2010
Dollar
HDB HDB Private Flats,
Among All Resident Households HDB
Total 1- & 2- 4-room or Condominiums or
(Per Household Member) 3-room
Room Larger Private Houses
2010
Annual Household Income from Work
26,863 6,111 17,710 22,932 56,317
Per Household Member
Government Benefits 1,112 2,647 1,479 1,042 525
As % of Annual Household Income from
4.1 43.3 8.4 4.5 0.9
Work Per Household Member
1
Refer to glossary for the government benefits that were included in this paper.
2
Data on government benefits are preliminary.
12 Government schemes also added more to households with no working
persons (on per household member basis) than employed households. Resident
households with no working persons received $2,180 per household member on
average from government schemes in 2010 (Table 7). In comparison, employed
households received $990 per household member on average from the various
government schemes.
Table 7 Average Annual Government Benefits1,2 Received Per Household Member
Among Resident Households by Number of Working Persons and Housing Types, 2010
Dollar
HDB HDB Private Flats,
HDB
Total 1- & 2- 4-Room or Condominiums or
3-Room
Room Larger Private Houses
Government Benefits
All Households 1,112 2,647 1,479 1,042 525
Households with No Working Persons 2,182 3,690 2,480 1,816 966
‘Retiree’ households3 2,723 4,163 2,844 2,385 1,343
Households with at least 1 Working
987 2,021 1,289 988 477
Person (Employed households)
1
Refer to glossary for the government benefits that were included in this paper.
2
Data on government benefits are preliminary.
3
Retiree households are defined, for statistical purposes, as those comprising solely non-working persons aged 60
years and over.
6
9. IV Household Income Distribution
13 The disparity in household income from work per household member
among employed households increased marginally in 2010. The Gini coefficient,
which is a summary measure of income inequality, increased slightly in 2010.
In particular, including employer CPF contributions5, the Gini coefficient was
0.472 in 2010, compared to 0.471 in 2009 (Chart 1). Adjusting in addition for
government benefits and taxes, the Gini coefficient was 0.452 in 2010.
Chart 1 Gini Coefficient1 Among Employed Households
Based on Original Income from Work per Household Member
Based on Income from Work per Household Member
After Accounting for employer CPF contributions
Based on Income from Work per Household Member
After Accounting for Government Benefits and Taxes2,3 and 0.489
employer CPF contributions
0.481 0.480
0.476 0.478
0.470 0.482
0.464 0.474
0.460 0.470 0.471 0.472
0.456 0.457
0.465 0.466
0.460
0.444 0.454 0.456
0.453
0.452
0.442 0.449 0.448
0.442 0.445 0.443 0.448
0.433
0.430 0.428
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Ratio of Average Income4 of
Top 20% to Lowest 20% 10.1 11.1 11.3 11.5 11.7 12.3 12.4 13.2 13.0 12.7 12.9
Employed Households
1
The Gini coefficient takes values from zero to one. The more unequal the income distribution, the larger is the Gini coefficient.
2
Refer to glossary for the government benefits and taxes that were included in this paper.
3
Data on income after accounting for government benefits and taxes for 2010 are preliminary.
4
Based on original household income from work per household member.
5
Employer CPF contributions are paid into employees’ own accounts.
7
10. V Concluding Remarks
14 Household income from work increased in both nominal and real terms in
2010 in tandem with the economic recovery. Households in smaller housing
types experienced the highest growth in household income. Average monthly
household income from work per household member also increased for all
income groups.
15 The Gini coefficient increased slightly in 2010, but was lower than the
peak in 2007.
16 The provision of the government’s various schemes improved the income
situation of households especially those in lower income groups, and served to
reduce household income disparities, resulting in a lower Gini coefficient after
these adjustments.
SINGAPORE DEPARTMENT OF STATISTICS
FEBRUARY 2011
8
11. Glossary of Terms and Definitions
Resident households
Resident households refer to households headed by Singapore citizens or
permanent residents.
Employed households
Employed households refer to resident households with at least one working
person.
Retiree households
Retiree households are defined, for statistical purposes, as those comprising
solely non-working persons aged 60 years and over.
Household income from work
Household income from work refers to the sum of income received by working
members of the household from employment and business. However, it does
not include the income of maids.
Household income from work per household member
Household income from work per household member refers to the household
income from work divided by the total number of members in the household.
For example, if only one person in a household of four is working, his income is
divided by four to derive the average income per household member.
Median Household Income
Median household income refers to the household income in the middle of the
income distribution, i.e. half of the households have higher income than the
median household income and half have lower income than the median
household income.
Decile (decile group)
A decile group is one tenth of all households arranged by their incomes from
minimum to maximum. The first decile group is the first one tenth (the 10% of
all household with lowest incomes). The last decile is the one tenth of the
households with the highest incomes.
9
12. Gini Coefficient
The Gini coefficient measures the degree of inequality of the income
distribution. It is equal to zero in the case of total income equality and to one in
the case of total inequality.
Government Benefits and Taxes
Government benefits include the following in relevant years
a) New Singapore Shares and Economic Restructuring Shares, Growth
Dividends, NS Bonus, GST Credits, Senior Citizen Bonus and Top-
Ups to CPF Accounts;
b) Re-Employment Support Scheme, Workfare Bonus and Workfare
Income Supplement disbursements;
c) Rebates on utilities, rental and service and conservancy charges;
d) Schemes relating to education, such as Edusave Pupil Fund,
Edusave Merit Bursary, Edusave Awards and Edusave Scholarships
for Government or Government Aided Schools. Also include MOE
Financial Assistance Scheme from 2006 onwards, Post-Secondary
Education Accounts Top-up and government’s matching grant from
2008 onwards;
e) Schemes relating to healthcare, such as subsidies for medical bills
incurred at A&E, day surgery, hospitalisation episodes from 2002
onwards. From 2006, also include subsidies for medical bills
incurred at specialist outpatient clinics and polyclinics, and Medifund
disbursements;
f) Baby Bonus from 2001 onwards, Centre-based Infant and Childcare
subsidies from 2002 onwards, and schemes relating to ComCare
programmes from 2004 onwards;
g) CPF Deferment Bonus from 2008 onwards, CPF Life Bonus and
Voluntary Deferment Bonus from 2009 onwards;
h) Income tax rebates and property tax rebates.
Taxes include income tax and indirect taxes. Indirect taxes include GST, maid
levy, car-related taxes, alcohol tax, tobacco tax, water conservation tax and
property tax.
10
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