Income inequality hit lower levels over past decade, MoF reports

The government linked this to income growth and transfers.

Singapore’s income inequality reached lower levels over the past decade, as Gini coefficients for household employment income declined, according to a report from the Ministry of Finance (MOF).

The report cited that the Gini coefficient based on household employment income after taxes and transfers stood at 0.359 in 2025 from 0.409 in 2015. 

"This reflects the combined effects of broad-based income growth, and a significant strengthening of transfers, with a greater share directed towards the lower-income," it said. 

Amongst the key programmes it introduced were Workfare Income Supplement and the Silver Support Scheme, which targeted support to seniors who had lower incomes. 

It also implemented social safety nets, such as ComCare and the Public Rental Scheme, provide additional resources for households with unmet basic needs, the report said.

Revised Gini coefficient, based on market income, also showed a down trend over the last decade to 0.379 in 2025 from 0.437 in 2015, albeit higher than the 0.359 gini coefficient based on employment income. 

By international comparison, this places Singapore on the higher end of the range among advanced economies.

The MoF, however, attributed this to its approach of maintaining a relatively lowe overall tax burden, compared to other economies.

"The larger reduction in the Gini coefficients observed in the Nordic economies (such as Sweden, Denmark and Norway) are associated with higher overall tax burdens on the population and more extensive transfers to the lower-income," it said. 

"Singapore has taken a different approach, maintaining a relatively low overall tax burden for the majority of Singaporeans while providing targeted support to those who need it most."