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pp-s17

  1. 1. KEY HOUSEHOLD INCOME TRENDS, 2010
  2. 2. Key Household Income Trends, 2010I Introduction1 This paper highlights the key trends in household income from work 1 in2010. The paper also presents the impact of the various government schemes onhousehold income in 2010.II Household Income GrowthHousehold Income Increased in Tandem with Strong Economic Growth2 Household income from work in 2010 increased in tandem with strongeconomic growth. Median monthly household income from work in 2010recovered to above the level before the economic downturn in 2009.3 Among resident households 2 , median monthly income from workincreased by 3.1 per cent from $4,850 in 2009 to $5,000 in 2010 (Table 1); inreal terms, the increase was 0.3 per cent3. Table 1 Monthly Household Income from Work Among Resident Households Median Household Income Average Household Income Year Nominal Real Nominal Real Dollar Dollar Change (%) Change (%) Change (%) Change (%) 2000 3,638 3.9 2.6 4,988 5.7 4.2 2001 3,860 6.1 5.0 5,338 7.0 5.9 2002 3,628 -6.0 -5.6 5,069 -5.0 -4.7 2003 3,601 -0.7 -1.2 5,075 0.1 -0.4 2004 3,689 2.4 0.8 5,194 2.3 0.7 2005 3,860 4.6 4.1 5,447 4.9 4.4 2006 4,000 3.6 2.6 5,715 4.9 3.9 2007 4,375 9.4 7.1 6,295 10.1 7.9 2008 4,946 13.1 6.0 7,086 12.6 5.6 2009 4,850 -1.9 -2.5 6,826 -3.7 -4.2 2010 5,000 3.1 0.3 7,214 5.7 2.81 Household income from work refers to the sum of income received by all working members of thehousehold from employment and business but excludes the income of maids.For statistical purposes, a household refers to a group of persons living in the same dwelling unit andsharing common living arrangements. A household may comprise related or unrelated members.2 Resident households refer to households headed by Singapore citizens or permanent residents.3 The Consumer Price Index (CPI) is used as a deflator to compute real income changes in this paper. 1
  3. 3. 4 Among employed households (households with at least one workingperson), median monthly income from work increased by 5.7 per cent innominal terms (from $5,400 in 2009 to $5,700 in 2010) and 2.8 per cent in realterms (Table 2). Table 2 Monthly Household Income from Work Among Employed Households Median Household Income Average Household Income Year Nominal Real Nominal Real Dollar Dollar Change (%) Change (%) Change (%) Change (%) 2000 4,000 5.3 3.9 5,456 7.0 5.6 2001 4,141 3.5 2.5 5,736 5.1 4.1 2002 4,038 -2.5 -2.1 5,572 -2.9 -2.5 2003 4,050 0.3 -0.2 5,618 0.8 0.3 2004 4,106 1.4 -0.3 5,761 2.5 0.9 2005 4,345 5.8 5.3 6,052 5.1 4.6 2006 4,495 3.5 2.5 6,280 3.8 2.8 2007 4,883 8.6 6.4 6,889 9.7 7.4 2008 5,475 12.1 5.2 7,752 12.5 5.5 2009 5,398 -1.4 -2.0 7,549 -2.6 -3.2 2010 5,704 5.7 2.8 8,058 6.7 3.8Highest Household Income Growth Among Smaller Housing Types5 Median monthly household income from work increased by 10 per cent(7.0 per cent in real terms) among employed households living in HDB 1- and2-room flats, 6.5 per cent (3.6 per cent in real terms) among HDB 3-room flats,5.3 per cent (2.4 per cent in real terms) among HDB 4-room or larger flats, and3.0 per cent (0.2 per cent in real terms) among employed households living inprivate properties (Table 3). 2
  4. 4. Table 3 Median Monthly Household Income from Work Among Employed Households by Housing Types Median Monthly Household Income Distribution Nominal Real by Housing Dollar Change (%) Change (%) Types, 2010 2008- 2009- 2008- 2009- (%) 2008 2009 2010 2009 2010 2009 2010Total 5,475 5,398 5,704 -1.4 5.7 -2.0 2.8 100.0HDB 1- & 2- Room 1,190 1,091 1,200 -8.3 10.0 -8.9 7.0 3.2HDB 3-Room 3,230 3,193 3,401 -1.1 6.5 -1.7 3.6 18.8HDB 4-Room or Larger 5,599 5,556 5,850 -0.8 5.3 -1.3 2.4 60.0Private Flats, Condominiums 12,568 12,502 12,877 -0.5 3.0 -1.1 0.2 17.0or Private Houses Increase in Household Income for All Income Groups 6 For the following analysis on household income by income groups, all employed households were ranked by their monthly household income from work per household member in ascending order and divided into ten equal groups or deciles4. 7 Employed households enjoyed real income growth across all groups in 2010. Employed households in the 11th – 50th percentiles experienced the highest increase in real terms, ranging from 5.4 – 7.5 per cent, followed by 4.9 per cent by the lowest 10% and 4.1 per cent by the top 10% (Table 4). Employed households in the 51st – 90th percentiles saw their average monthly household income from work increase by 1.2 – 3.5 per cent in real terms. 4 Since the household income data cover only income from work, employed households are used in the analysis of income of households in different income groups. Households with no working person could have income from non-work sources. 3
  5. 5. Table 4 Average Monthly Household Income from Work Among Employed Households by Deciles Nominal Real 2008 2009 2010 Annual Change (%) Annual Change (%) Deciles ($) ($) ($) 2008 2009 2010 2008 2009 2010 Total 7,752 7,549 8,058 12.5 -2.6 6.7 5.5 -3.2 3.8 1st - 10th 1,312 1,303 1,400 7.5 -0.7 7.4 -0.3 -2.8 4.9 11th - 20th 2,479 2,459 2,681 10.8 -0.8 9.0 2.8 -2.9 6.4 21st - 30th 3,425 3,472 3,757 12.7 1.4 8.2 5.8 0.5 5.4 31st - 40th 4,426 4,424 4,886 11.4 0.0 10.4 4.5 -0.9 7.5 41st - 50th 5,456 5,354 5,888 11.3 -1.9 10.0 4.4 -2.7 7.1 51st - 60th 6,732 6,599 7,016 14.4 -2.0 6.3 7.4 -2.8 3.5 61st - 70th 8,038 7,969 8,358 12.6 -0.9 4.9 5.7 -1.7 2.1 71st - 80th 9,720 9,559 10,095 11.4 -1.7 5.6 4.6 -2.5 2.8 81st - 90th 12,914 12,290 12,818 14.0 -4.8 4.3 7.4 -4.7 1.2 91st - 100th 23,023 22,062 23,684 12.6 -4.2 7.4 6.1 -4.0 4.18 To account for the change in household size over time, household incomefrom work is divided by the total number of members in the household to derivethe household income per household member.9 Average monthly household income from work per household memberincreased in real terms by more than 3.0 per cent for all income groups (Table5). The increase was bigger for employed households in the 11th – 40thpercentile and the top 10%, ranging from 5.0 to 5.3 per cent in real terms in2010. Among employed households in the 41st – 90th percentile and the lowest10%, the increase ranged from 3.4 to 4.3 per cent in real terms. 4
  6. 6. Table 5 Average Monthly Household Income from Work Per Household Member Among Employed Households by Deciles Nominal Real 2008 2009 2010 Annual Change (%) Annual Change (%) Deciles ($) ($) ($) 2008 2009 2010 2008 2009 2010 Total 2,382 2,326 2,500 9.9 -2.4 7.5 3.1 -2.9 4.5 1st - 10th 340 334 354 9.3 -1.8 6.0 1.4 -3.8 3.5 11th - 20th 630 626 675 10.5 -0.6 7.8 2.5 -2.7 5.3 21st - 30th 883 872 940 11.8 -1.2 7.8 4.9 -2.1 5.0 31st- 40th 1,141 1,122 1,210 12.2 -1.7 7.8 5.3 -2.5 5.0 41st - 50th 1,424 1,409 1,506 12.2 -1.1 6.9 5.3 -1.9 4.1 51st - 60th 1,761 1,739 1,853 12.2 -1.2 6.6 5.3 -2.1 3.7 61st - 70th 2,209 2,164 2,298 12.1 -2.0 6.2 5.2 -2.9 3.4 71st - 80th 2,831 2,759 2,937 11.6 -2.5 6.5 4.8 -3.4 3.6 81st - 90th 3,904 3,770 4,055 11.4 -3.4 7.6 4.9 -3.3 4.3 91st - 100th 8,700 8,463 9,174 6.9 -2.7 8.4 0.7 -2.6 5.1III Government Benefits Received by Households10 Over the years, Singapore has introduced various schemes such as GSTCredits, Senior Citizen Bonus and rebates on utilities, rental and service andconservancy charges.11 On average, the various government schemes added $1,110 perhousehold member to resident households in 2010 (Table 6). The variousgovernment schemes gave a larger boost to those staying in smaller housingtypes. Resident households in HDB 1- and 2-room flats received an average of$2,650 per household member while resident households in HDB 3-room flatsreceived an average of $1,480 per household member. This was higher than the$530 per household member for households in private properties. 5
  7. 7. Table 6 Average Annual Household Income from Work and Government Benefits1, 2 Received Per Household Member Among Resident Households by Housing Types, 2010 Dollar HDB HDB Private Flats, Among All Resident Households HDB Total 1- & 2- 4-room or Condominiums or (Per Household Member) 3-room Room Larger Private Houses 2010 Annual Household Income from Work 26,863 6,111 17,710 22,932 56,317 Per Household Member Government Benefits 1,112 2,647 1,479 1,042 525 As % of Annual Household Income from 4.1 43.3 8.4 4.5 0.9 Work Per Household Member1 Refer to glossary for the government benefits that were included in this paper.2 Data on government benefits are preliminary. 12 Government schemes also added more to households with no working persons (on per household member basis) than employed households. Resident households with no working persons received $2,180 per household member on average from government schemes in 2010 (Table 7). In comparison, employed households received $990 per household member on average from the various government schemes. Table 7 Average Annual Government Benefits1,2 Received Per Household Member Among Resident Households by Number of Working Persons and Housing Types, 2010 Dollar HDB HDB Private Flats, HDB Total 1- & 2- 4-Room or Condominiums or 3-Room Room Larger Private Houses Government Benefits All Households 1,112 2,647 1,479 1,042 525 Households with No Working Persons 2,182 3,690 2,480 1,816 966 ‘Retiree’ households3 2,723 4,163 2,844 2,385 1,343 Households with at least 1 Working 987 2,021 1,289 988 477 Person (Employed households)1 Refer to glossary for the government benefits that were included in this paper.2 Data on government benefits are preliminary.3 Retiree households are defined, for statistical purposes, as those comprising solely non-working persons aged 60years and over. 6
  8. 8. IV Household Income Distribution 13 The disparity in household income from work per household member among employed households increased marginally in 2010. The Gini coefficient, which is a summary measure of income inequality, increased slightly in 2010. In particular, including employer CPF contributions5, the Gini coefficient was 0.472 in 2010, compared to 0.471 in 2009 (Chart 1). Adjusting in addition for government benefits and taxes, the Gini coefficient was 0.452 in 2010. Chart 1 Gini Coefficient1 Among Employed Households Based on Original Income from Work per Household Member Based on Income from Work per Household Member After Accounting for employer CPF contributions Based on Income from Work per Household Member After Accounting for Government Benefits and Taxes2,3 and 0.489 employer CPF contributions 0.481 0.480 0.476 0.478 0.470 0.482 0.464 0.474 0.460 0.470 0.471 0.472 0.456 0.457 0.465 0.466 0.460 0.444 0.454 0.456 0.453 0.452 0.442 0.449 0.448 0.442 0.445 0.443 0.448 0.433 0.430 0.428 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ratio of Average Income4 of Top 20% to Lowest 20% 10.1 11.1 11.3 11.5 11.7 12.3 12.4 13.2 13.0 12.7 12.9 Employed Households1 The Gini coefficient takes values from zero to one. The more unequal the income distribution, the larger is the Gini coefficient.2 Refer to glossary for the government benefits and taxes that were included in this paper.3 Data on income after accounting for government benefits and taxes for 2010 are preliminary.4 Based on original household income from work per household member. 5 Employer CPF contributions are paid into employees’ own accounts. 7
  9. 9. V Concluding Remarks14 Household income from work increased in both nominal and real terms in2010 in tandem with the economic recovery. Households in smaller housingtypes experienced the highest growth in household income. Average monthlyhousehold income from work per household member also increased for allincome groups.15 The Gini coefficient increased slightly in 2010, but was lower than thepeak in 2007.16 The provision of the government’s various schemes improved the incomesituation of households especially those in lower income groups, and served toreduce household income disparities, resulting in a lower Gini coefficient afterthese adjustments.SINGAPORE DEPARTMENT OF STATISTICSFEBRUARY 2011 8
  10. 10. Glossary of Terms and DefinitionsResident householdsResident households refer to households headed by Singapore citizens orpermanent residents.Employed householdsEmployed households refer to resident households with at least one workingperson.Retiree householdsRetiree households are defined, for statistical purposes, as those comprisingsolely non-working persons aged 60 years and over.Household income from workHousehold income from work refers to the sum of income received by workingmembers of the household from employment and business. However, it doesnot include the income of maids.Household income from work per household memberHousehold income from work per household member refers to the householdincome from work divided by the total number of members in the household.For example, if only one person in a household of four is working, his income isdivided by four to derive the average income per household member.Median Household IncomeMedian household income refers to the household income in the middle of theincome distribution, i.e. half of the households have higher income than themedian household income and half have lower income than the medianhousehold income.Decile (decile group)A decile group is one tenth of all households arranged by their incomes fromminimum to maximum. The first decile group is the first one tenth (the 10% ofall household with lowest incomes). The last decile is the one tenth of thehouseholds with the highest incomes. 9
  11. 11. Gini CoefficientThe Gini coefficient measures the degree of inequality of the incomedistribution. It is equal to zero in the case of total income equality and to one inthe case of total inequality.Government Benefits and TaxesGovernment benefits include the following in relevant years a) New Singapore Shares and Economic Restructuring Shares, Growth Dividends, NS Bonus, GST Credits, Senior Citizen Bonus and Top- Ups to CPF Accounts; b) Re-Employment Support Scheme, Workfare Bonus and Workfare Income Supplement disbursements; c) Rebates on utilities, rental and service and conservancy charges; d) Schemes relating to education, such as Edusave Pupil Fund, Edusave Merit Bursary, Edusave Awards and Edusave Scholarships for Government or Government Aided Schools. Also include MOE Financial Assistance Scheme from 2006 onwards, Post-Secondary Education Accounts Top-up and government’s matching grant from 2008 onwards; e) Schemes relating to healthcare, such as subsidies for medical bills incurred at A&E, day surgery, hospitalisation episodes from 2002 onwards. From 2006, also include subsidies for medical bills incurred at specialist outpatient clinics and polyclinics, and Medifund disbursements; f) Baby Bonus from 2001 onwards, Centre-based Infant and Childcare subsidies from 2002 onwards, and schemes relating to ComCare programmes from 2004 onwards; g) CPF Deferment Bonus from 2008 onwards, CPF Life Bonus and Voluntary Deferment Bonus from 2009 onwards; h) Income tax rebates and property tax rebates.Taxes include income tax and indirect taxes. Indirect taxes include GST, maidlevy, car-related taxes, alcohol tax, tobacco tax, water conservation tax andproperty tax. 10
  12. 12. SINGAPORE DEPARTMENT OF STATISTICS INFORMATION DISSEMINATION SERVICESStatistics Singapore Website The Statistics Singapore Website was launched by the Singapore Department of Statistics (DOS) inJanuary 1995. Internet users can access the website by connecting to: http://www.singstat.gov.sg Key Singapore statistics are available via the following sections:  Statistics which provides key data on Singapore’s economy and population.  News which covers the Performance of Singapore Economy, the Consumer Price Index, the Wholesale Trade Index, Business Receipts Index for Service Industries, Retail Sales and Catering Trade Indices, Manufacturing Performance, Singapore External Trade, Tourism Sector Performance, Real Estate Information and Employment Situation.  Publications – Papers & Analyses which provides papers on economic and social topics.  Themes which presents official statistics compiled by DOS and the Research and Statistics Units in the various ministries and statutory boards according to themes. Within each theme, relevant statistics and related press releases, publications and references are provided. Statistical resources are available via:  Publication Catalogue which lists the latest editions of publications released by DOS at http://www.singstat.gov.sg/pubn/catalog.html. All softcopy DOS publications are available for free downloading. Statistical tables of DOS publications in Excel format are also available.  Advance Release Calendar which covers key Singapore economic indicators. The website also provides a convenient gateway to international statistical websites under the “Statistical Resources” section:  Guide to International Statistics which covers international databases, classifications and links, and statistical terms and definitions.  IMF Dissemination Standards Bulletin Board which provides metadata about Singapore’s key indicators in the real, fiscal, financial and external sectors, including dissemination practices and information about pre-release access of current indicators.SingStat Express SingStat Express is a personalised data delivery service which sends the latest press releases, notices ofpublication, newsletter, occasional and information papers to subscribers via email. SMS alert service is alsoavailable to local users. Subscription details are available from the Statistics Singapore Website(www.singstat.gov.sg/express).
  13. 13. SINGAPORE DEPARTMENT OF STATISTICS INFORMATION DISSEMINATION SERVICES (contd)Really Simple Syndication Really Simple Syndication (RSS) is an easy way to stay updated on the latest statistical news releasedvia the Statistics Singapore Website. The SingStat RSS feed delivers statistical news highlights and hyperlinks tothe source documents whenever the updates are posted. More information is available athttp://www.singstat.gov.sg/svcs/rss.html.Data on SMS Data on SMS is a free mobile service for local data users to receive the latest data for key indicators viaSMS. Simply key data and SMS to 74688 (or SGOVT) for the service. More information is available athttp://www.singstat.gov.sg/svcs/dataonsms.html.SingStat Time Series (STS) Online System The SingStat Time Series (STS) Online System is an internet-accessible time series retrieval system.The STS includes more than 7,000 historical data series on Singapore society and economy from severaldomains, including national accounts, balance of payments, investments, finance, labour, prices, businessexpectations, trade, manufacturing, tourism, demography, health and education. Besides the usual monthly, quarterly and annual data, STS includes also seasonally adjusted data seriesfor key economic indicators providing for a better analysis and understanding of current economic trends. TheSTS also offers:  Web-based search engine that is easy to use;  “Bookmark” features that enable users to save and organise links in their personalised portals. Subscription to STS is opened to local and overseas users. More information on STS is available viaStatistics Singapore Website. For enquiries, please contact our Department at Tel: 6332-7119.E-survey The E-survey enables business organisations to complete and submit their survey forms through theinternet. Using secured encryption protocols, the E-survey ensures that the information transmitted through thenet is secured and protected. The system features online helps and validation checks to assist respondents incompleting their survey forms. With the E-survey, respondents can do away with the tedious paper work andmanual tasks of mailing or faxing their survey returns to the Department.Statistical Enquiries and Feedback If you have any statistical enquiries or comment or suggestions on our statistical publications andelectronic services, you are welcomed to: E-mail us at info@singstat.gov.sg Fax to us at (65) 6332-7689 Call us at 1800-3238118* (local callers) (65) 6332-7738 (overseas callers)* Calls from mobile telephone lines to 1800 local toll free number may be subject to mobile airtime charges as imposed by the relevant mobile service provider.

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