Household incomes rise strongly in 2025 as inequality hits decade low

Median income per household member grew at a rate of 3.8% per annum.

Resident households recorded strong income growth in 2025, alongside a decline in income inequality to its lowest level in a decade, following a major change in the way household income is measured, according to the Department of Statistics (SingStat).

SingStat said it has shifted from reporting household employment income to a broader “market income” concept. 

The new measure includes both employment income and non-employment sources such as rental and investment income, annuities and regular Central Provident Fund (CPF) payouts. 

The revised methodology also expands coverage to include non-employed households.

Using the new definition, median monthly household market income rose 7.7% in nominal terms in 2025, increasing from $11,558 to $12,446. In real terms, median income grew 6.8%. 

After accounting for household size, median income per household member increased 7.5% in real terms to $4,160.

Over the five-year period from 2020 to 2025, median income per household member grew at an average rate of 3.8% per annum in real terms, SingStat said.

Income growth was broad-based across income groups. Average monthly income per household member rose across all income deciles, with lower-income households recording the strongest real growth, ranging from 3.0% to 12.8%. 

Employment income remained the largest contributor to household income, accounting for 79.6% of total market income, although this was lower than the 81.1% share recorded in 2024.

For households in the lowest income decile, non-employment income formed the bulk of earnings. Investment income, largely from CPF interest, and other income such as CPF LIFE payouts together accounted for nearly 78% of total income, underscoring the importance of retirement-related income streams for lower-income seniors.

Government transfers continued to play a significant role in supporting households. In 2025, resident households received an average of $7,300 per member in government transfers, down slightly from $7,725 in 2024, mainly due to the cessation of one-off support schemes. 

Residents living in one- and two-room HDB flats received the highest level of support, averaging $16,519 per member, more than double the national average.

SingStat also noted that households in the first seven income deciles received more in government transfers than they paid in taxes.

Income inequality declined further in 2025. The Gini coefficient based on market income fell to 0.452, the lowest level since records began in 2015. After accounting for government transfers and taxes, the Gini coefficient declined to 0.379, also the lowest level recorded over the same period.