Occasional Paper on Income Growth, Inequality, and Mobility Trends in Singapore

1.              The Ministry of Finance (MOF) released an Occasional Paper today, titled “Income Growth, Inequality, and Social Mobility Trends in Singapore”. In addition to reviewing the trends in these areas, the Occasional Paper also outlines the Government’s approach and policies to sustain a fair and inclusive society. It is an update of an earlier Occasional Paper published in August 2015.^[1]

2.              This updated Occasional Paper incorporates new data on household market income^[2] and wealth to provide a more complete picture of household income and wealth in Singapore. The Department of Statistics has also released a report on trends in household market income, which comprises income from both employment and non-employment sources, in its latest Key Household Income Trends Report.

 Key Trends

3.              The key trends from the paper are as follows:

a.     Income growth has been broad-based. Resident households at all deciles saw real income growth over the last decade, with lower-income households experiencing higher real income growth.

b.     Income inequality, measured both before and after taxes and transfers, has declined. The Gini coefficient, after tax and transfers and based on household employment income, has improved from 0.409 in 2015 to 0.359 in 2025. The Gini coefficient after tax and transfers and based on household market income has also improved from 0.437 in 2015 to 0.379 in 2025.

c.     Wealth inequality, based on available data, is higher than income inequality, but is broadly comparable to that of other advanced economies.

d.     Most Singaporeans have experienced upward income mobility across generations, and Singapore has done relatively well in sustaining social mobility compared to other advanced economies. However, as Singapore’s economy matures, our social mobility has shown signs of gradual moderation.

The Government’s Approach

4.              Singapore is in a stronger position than many other countries, but we must continue to work hard to address the pressures of inequality and slowing social mobility, as with many other advanced economies. The Government will continue to lean against these pressures by pursuing inclusive growth and taking continued steps to mitigate inequality and support social mobility. 

5.              The full Occasional Paper can be found at go.gov.sg/mof-inclusivegrowth.

Issued by:
Ministry of Finance
Singapore
9 February 2026

[1] MOF’s OP in August 2015 on “Income growth, inequality and mobility trends in Singapore” can be found at go.gov.sg/mof-op-aug2015.

[2] Market income comprises employment and non-employment income, including investment income, rental income, contributions from other households, pensions, annuities, and regular insurance payouts.