INCOME
Nominal income continued to rise this year, but at a more moderate pace compared with most years in the last decade, said MOM.
The median gross monthly income from employment of full-time employed residents was S$5,197 (US$3,900), a 2.5 per cent increase from 2022.
This increase was lower than the annualised average rate of increase from 2013 to 2023, which was 3.4 per cent.
At the 20th percentile, nominal income was S$2,826, a 1.7 per cent increase from last year. This is lower than the 4.1 per cent per annum increase from 2013 to 2023.
Singapore saw inflation rise to a 14-year high in January and February this year – with core inflation hitting 5.5 per cent – before trending downwards.
After adjusting for inflation, real income at the median fell 2.3 per cent this year.
For those at the 20th percentile, real income fell 3 per cent. After accounting for Workfare Income Supplement and related payments, real income at the 20th percentile saw a smaller decline of 2.1 per cent.
The decline in 2023 has dampened gains from 2018 to 2023 compared with the period from 2013 to 2018.
However, over the longer-term, real income growth for the 20th percentile worker still outpaced that of the median worker, due to measures to uplift lower-wage workers, said MOM.
“As a result, the gap in income between the (20th percentile) and (median) worker has narrowed,” said MOM.
The ministry added: “Economic headwinds will continue to weigh on the labour market going forward. The government encourages employers and workers to make full use of available programmes to remain competitive and resilient amidst economic uncertainty.”