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We wrote about what a good salary is in Singapore, where the average monthly salary of a typical Singaporean worker is $ 5,877 (including the employer’s CPF).
While it’s good to know where you stand when it comes to your individual salary, a better number to look at will be your household income.
Median monthly household income measures the combined income of all people living under the same roof.
It includes all forms of income such as salaries, employer CPF employee contributions and returns on investment.
TL; DR: The median income of Singaporean households is $ 7,744
- Household income is the sum of the gross income of all members of a household.
- For households with at least one working person, the median household income for Singaporeans is $ 7,744
- The median household income from work per household member is $ 2,463.
- Median household income was $ 5,600 in 2010, indicating an increase of 1.9% after adjusting for inflation.
- 13.3 percent of Singaporean households have no monthly income from work. These are households without an active person.
We generally use the median for a better representation, as the average income is often skewed by the high income.
Where do you fit in with the rest of Singaporeans?
The Household Income of the Average Singaporean: Where Do You Stand?
The median household income is $ 7,744 in 2020.
It rose from $ 5,600 in 2010, which means an increase of 1.9% per year after adjusting for inflation.
This means that if you add up the monthly income of all income in your household and it exceeds $ 7,744, you are better off than 50% of households.
The average monthly household income is $ 10,608 (average = total sum divided by the total number of households).
There are 13.1% of jobless households, against 10.5% in 2010.
READ ALSO: Singapore Census: Household Incomes Are Higher, But Does More Money Mean More Problems?
Distribution of Singaporeans in terms of monthly household income
| Monthly household income from work | Resident households (%) | Percent difference | |
|---|---|---|---|
| 2010 | 2020 | ||
| Less than $ 1,000 | 3.5 percent | 2.0% | -1.5 percent |
| $ 1,000 to $ 2,999 | 15.2% | 10.2% | -5.0 percent |
| $ 3,000 to $ 4,999 | 16.2% | 10.6 percent | -5.6 percent |
| $ 5,000 to $ 6,999 | 14.1 percent | 10.4% | -3.7 percent |
| $ 7,000 to $ 8,999 | 10.8 percent | 9.4% | -1.4 percent |
| $ 9,000 to $ 10,999 | 8.0% | 8.4% | + 0.4% |
| $ 11,000 to $ 12,999 | 5.6 percent | 6.8 percent | + 0.8% |
| $ 13,000 to $ 14,999 | 3.9 percent | 5.6 percent | +1.7 percent |
| $ 15,000 to $ 17,499 | 3.5 percent | 5.6 percent | + 2.1% |
| $ 17,500 to $ 19,999 | 2.2% | 4.0% | +1.8 percent |
| $ 20,000 and over | 6.6 percent | 13.9 percent | + 7.3% |
Monthly household income has generally increased since 2010, with a decline in the proportion of resident households earning less than $ 6,999 and an increase in the proportion of households earning $ 7,000 and over.
The proportion of resident households earning at least $ 9,000 has increased significantly, from 29.7% in 2010 to 44.2% in 2020.
The biggest change was seen for the group earning $ 20,000 and over, with numbers more than doubling from 6.6% to 13.9%.
Median monthly household income per person
This might be inaccurate if we only looked at the median monthly household income, as there are a different number of members in a household.
Thus, another method is to examine the median household income per person.
[[nid:518166]]Monthly household income per person is calculated by taking the total gross monthly household income divided by the total number of family members living under one roof.
Median household income per household member fell from $ 1,638 in 2010 to $ 2,463 in 2020.
This is growth of 2.8 percent per year after adjusting for inflation.
Therefore, if your household income per household member is more than $ 2,463, you are better off than 50% of households in Singapore.
In contrast, the average median household income per person is $ 3,488.
What does this mean to you ?
“It’s what you do with your income that matters. “
Falling below the median household income doesn’t necessarily mean you’re poor.
In fact, we know more Singaporeans who are poor despite higher income.
This is because with increased wages, people often start spending more due to lifestyle inflation.
It is therefore more important to look at your savings rate instead.
Ideally, as our income increases, your savings rate should also increase.
We should ultimately aim for an increase in spending less than the increase in income.
What can you do about it?
If you fall below the median household income, here are a few ways to avoid letting it get in your way:
- Obtain proper insurance coverage so that your financial safety net is there to protect your own savings.
- Household income includes all forms of income, including investment earnings. One can seek to increase the income of his household through investments.
- Simple things like getting the best savings account for that extra interest rate can help you in the long run.
- Married couples may consider coming up with a possible budgeting formula to help them save better for their household. Here’s one of the methods we’ve written about that can help a couple save an extra $ 120,000!
- Another tip for Singaporeans would be to use free course credits to upgrade your knowledge and skills, which could speed up your earning power.
- Set your own personal financial goals and know what you are working towards and what you are working hard for.
This article first appeared in Seed.
