Real incomes rise in 2024 as wages increase and inflation eases

Both lower- and median-income workers experienced an increase in real incomes.

Real incomes for Singaporeans rebounded from 2023 levels, driven by higher nominal incomes and eased inflation, the Ministry of Manpower (MoM) reported.

Nominal incomes for both lower-income (P20) and median-income (P50) workers in Singapore increased in 2024, rising by 7.1% to $3,026 and 5.8% to $5,500, respectively.

These increases, coupled with eased inflation, led to real income growth of 4.6% for P20 workers and 3.4% for P50 workers, recovering from declines of 3.0% and 2.2% in 2023.

Notably, P20 income growth outpaced P50 income growth, resulting in an improvement in the P20 to P50 income ratio to 0.55 in 2024, up from 0.54 in 2023 and 2019, and 0.52 in 2014.

MoM expects greater increases in P20 income in the coming years, as increases in nominal wage requirements negotiated by tripartite partners under the Progressive Wage Model (PWM) are gradually implemented.