SINGAPORE: As wages increased and inflation eased, real incomes for Singapore residents rose in 2024, the Manpower Ministry said on Thursday (Nov 28).
Real incomes take inflation into account, and measure the purchasing power of an individual.
Nominal incomes increased at a faster pace this year compared with last year, with the nominal median gross monthly income increasing from S$5,197 (US$3,880) to S$5,500, the Ministry of Manpower (MOM) said in an advance release of its labour force report.
That is a 5.8 per cent increase, up from 2.5 per cent growth last year.
At the 20th percentile – the lower end of the income scale – nominal income stood at S$3,026, a 7.1 per cent increase from S$2,826. From 2022 to 2023, nominal income grew only 1.7 per cent.
The increase in nominal income coupled with easing inflation means real incomes grew in 2024, said MOM.
For employees at the 20th percentile, real incomes grew 4.6 per cent after shrinking 3 per cent in 2023. Median real incomes grew 3.4 per cent after contracting 2.2 per cent last year.
“In fact, I think we see a broad-based increase across all deciles, so it’s not just these two groups that we are focusing on,” said Mr Ang Boon Heng, director of the manpower research and statistics department.
“The real income growth in 2024 was close to the average growth rates seen in the years preceding COVID-19 … when inflation was lower,” the report said.
