We wrote about what good pay is in Singapore, where a typical Singaporean worker’s average monthly salary stands at S$6,282 (including employer CPF).
While it is good to know where you stand when it comes to your individual salary, a better number to look at will be your household income.
The Resident Employed household income measures the combined incomes of all the people living under the same roofĀ with at least one employed person.
It includes every form of income such as salaries, employer’s CPF wage contributions, and investment returns.
TL;DR: Median Singaporean Household Income Has Risen to $10,099 in 2022
- Household income is the sum of the gross income of all the members of a household.
- For households with at least one working person, the median household income for resident-employed households has risen from $9,520 in 2021 to $10,099 in 2022.
- After adjusting for inflation, the median monthly household income from work rose 0.2 per centĀ in 2022.
- The median household income from work per household member rose from $3,027 in 2021 to $3,287 in 2022.
- After adjusting for inflation, the median monthly household income from work per household member rose 2.6 per cent in 2022.
Source: Singapore Census of Population 2020, Department of Statistics Singapore
We usually use the median for better representation, since average income is often skewed by top earners.Ā
Where Do You Stand Alongside the Rest of the Singaporeans?
| Monthly Resident Employed Household Income from Work ($) | Percentage of Resident Employed Households |
|---|---|
| Below 1,000 | 2.27% |
| 1,000 - 1,999 | 5.93% |
| 2,000 - 2,999 | 5.83% |
| 3,000 - 3,999 | 6.23% |
| 4,000 - 4,999 | 5.94% |
| 5,000 - 5,999 | 6.18% |
| 6,000 - 6,999 | 5.77% |
| 7,000 - 7,999 | 5.56% |
| 8,000 - 8,999 | 5.28% |
| 9,000 - 9,999 | 5.02% |
| 10,000 - 10,999 | 4.63% |
| 11,000 - 11,999 | 4.13% |
| 12,000 - 12,999 | 3.69% |
| 13,000 - 13,999 | 3.45% |
| 14,000 - 14,999 | 2.99% |
| 15,000 - 17,499 | 6.46% |
| 17,500 - 19,999 | 4.63% |
| 20,000 & Over | 16.01% |
Source: Department of Statistics Singapore
The Household Income of an Average Singaporean: Where Do You Stand?
According to the Singapore Department of Statistics, the median household income for resident-employed households is $10,099 in 2022.
It increased from $9,520 in 2021, which means a 0.2 per cent increaseĀ after adjusting for inflation.
This means that if you add up the monthly income of all income earners in your household and it exceeds $10,099, you are better off than 50% of the households out there.
The average monthly resident-employed household income is $13,124 (average = total sum divided by the total number of households).
Median Household Monthly Income per Person
It could be inaccurate if we were to look at the median household monthly income alone since household sizes vary.
As such, another method is to look at the median household income per person.
Household monthly income per person is calculated by taking the total gross household monthly income divided by the total number of family members living under one roof.
The median household income from work per household member rose from $3,027 in 2021 to $3,287 in 2022.
This refers to a growth of 2.6 per cent after adjusting for inflation.
Hence, if your household income per member in the household is above $3,287, you are better off than 50% of the households in Singapore.
On the other hand, the averageĀ household income per person stands at $3,676.
What Does It Mean for You?
” It is what you do with your income that matters.”
Falling below the median for household income does not necessarily mean that you are poor.
In fact, we know of more Singaporeans who are poor despite earning a higher income.
This is because, with an increased salary, people often start spending more due to lifestyle inflation.
It is, therefore, more important to take a look at your savings rate instead.
Ideally, as our income increases, your savings rate should increase as well.
We should ultimately aim to have an increase in expenses lesser than the increase in income.
What Can You Do About It?
If you fall below the median household income, here are some ways toĀ not let it get in your way:
- Get proper insurance coverage so that your financial safety net will be there to safeguard your own savings.
- Household income includes every form of income, including investment gains. One can look to increase his household income through investments.
- Simple things such as getting the best savings account for that extra interest rate can help you in the long run.
- Married couples can look to come out with a possible budgeting formula to help them save better for their household. Here’s one of the methods we wrote about which can help a couple save an extra S$120,000!
- Another life hack for Singaporeans would be to make use of free course credits to upgrade yourself in terms of knowledge and skills, which could accelerate your earning power.
- Set your own personal finance goals and know what you’re working towards and what you’re working hard for.
And of course, don’t forget to get all the free deals on Seedly Rewards to maximise your savings… š
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