When it comes to understanding the income levels in Singapore, we can reference a few key statistics. According to the Ministry of Manpower (MOM), as of 2023, full-time employed residents’ median gross monthly income is $5,197 (including employer CPF contributions). Without employer CPF contributions, this figure is about $4,441 in gross wages.
At first glance, this might seem reasonable, but when we consider the median gross salary of fresh graduates, the picture changes slightly. The Graduate Employment Survey for 2023 shows that the median salary for fresh graduates is $4,313. This creates a sense of disconnect, as the median salary of a fresh graduate is almost on par with the median gross monthly income of all workers in the country. It’s common to see fresh graduates expecting a starting salary of at least $4,000 or more, and many achieve this.
While individual salaries may appear relatively high, especially for fresh graduates, it’s essential to consider how this translates into household income. According to data from SingStat, the median monthly household income from work (including employer CPF contributions) was $10,869 in 2023. If we exclude employer CPF contributions (assuming a 17% employer CPF rate), the gross median monthly household income would be approximately $9,289.
Here’s a breakdown of monthly household income, excluding employer CPF contributions. This data only includes households with at least one employed Singaporean citizen or permanent resident.
Around 11% of households in Singapore earn less than $3,000 per month. Approximately 30% of households fall within the income range of $3,000 to $9,000. Another 21% of households earn between $9,000 and $15,000, while 10% of households bring in between $15,000 and $20,000. If your household earns $20,000 or more per month from work, you are within Singapore’s top 15% of income earners.
While these figures might seem substantial, it’s important to remember that this income is shared among all the household members. Since household sizes vary, it can be more insightful to consider household income on a per-member basis to get a clearer picture of the financial situation. This gives a better understanding of the income available to each person in the household, helping to contextualise the overall financial well-being of different families.
For instance, a family of six with a household income of $20,000 (two adults, three children, and an elderly non-working parent) may be in Singapore’s top 15% of household incomes. However, when you break it down per household member, their income is $3,333 per person, placing them closer to the median income range.
In contrast, a household earning close to the median income of $10,000 but consisting of only two members would have a household income per person of $5,000. This puts them in a much higher position, closer to the top 25% of households by income per member.
In other words, while total household income is important, the number of people in the household is equally crucial. A household earning $15,000 with five family members (two adults and three children) might feel less financially comfortable than a couple earning a combined $10,000 but with no children. The financial pressures differ significantly based on household size.
Thou Shall Not Compare With Your Neighbours
We all know that comparing ourselves to our neighbours isn’t something we should do—but sometimes, it’s hard to resist. Whether it’s seeing the new car they just bought or hearing about their latest holiday, it’s natural to feel curious, or even envious, about how others are doing. However, it’s important to remember that everyone’s financial situation is unique. What may appear as wealth or success on the outside might not entirely reflect their underlying financial commitments or lifestyle choices.
Four-room HDB flats are the most common type of dwelling in Singapore, so it’s not surprising that the average monthly household income from work for these households—$10,066—closely aligns with the gross median monthly household income, which is $9,289.
On the higher end of the spectrum, households living in private properties have an average income of $20,964, which coincides with the upper range of household incomes. Earning $20,000 or more places a household within the top 15% of earners in Singapore.
Read Also: What’s The Median Salary In Singapore (At Every Age, Gender, Education and Race)
Top image by Jason Goh from Pixabay
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