Progress in narrowing income inequalities

With the economy in its second year of recovery from the impact of Covid-19, trends in income growth and inequality are encouraging. According to the latest Household Income Survey released on Tuesday, median household income from work surpassed the pre-pandemic level in 2021, rising by 3.6 per cent in nominal terms and 1.5 per cent in real terms, adjusted for inflation.

Income inequality continued to decline. Real income growth from work per household member was positive for all income deciles except the top one-tenth. Government transfer schemes were progressive in their impact: resident households living in one- and two-room HDB flats - a proxy for the lowest income groups - received more than double the transfers compared to residents of three-room flats and above.