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The authorities will press on with efforts to build a fairer and more just society, said PM Wong.

SummarySingapore's policies yielded wage growth and reduced income inequality over the past decade. But new headwinds require fresh approaches to boost social mobility, says PM Wong.MOF data put out on Feb 9 shows real wages rose fastest for lower-income workers. After taxes and transfers, the Gini coefficient hit a record low of 0.379 in 2025.Most Singaporeans earn more than their parents. However as Singapore'e economy matures, relative intergenerational mobility is gradually slowing.AI generated

Published Feb 09, 2026, 03:01 PM

Updated Feb 09, 2026, 09:28 PM

SINGAPORE – Data on income, wealth and inequality released on Feb 9

But amid new headwinds, more effort and a willingness to do things differently are required to keep the city state moving in the right direction, he added.

In a social media video following the Ministry of Finance’s (MOF) release of an occasional paper on Singapore’s income and social mobility trends, PM Wong said there are early signs of social mobility here slowing as the economy matures, similar to pressures faced by many advanced economies.

At the same time, many Singaporeans continue to feel anxious about the cost of living and economic uncertainties ahead.

In this term of government, the authorities will press on with efforts to build a fairer and more just society, and a more inclusive society for all, said PM Wong, who is also Finance Minister.

“This is the heart of Forward Singapore,” he said. “We are refreshing our approaches and renewing our social compact, so that every Singaporean has real and meaningful opportunities to progress, and we continue to move forward together, even amidst a more challenging global environment.”

The MOF paper showed that real wages rose across all income levels over the past 10 years. Importantly, wage growth was strongest for lower-income workers, faster than for those in the middle or at the top, PM Wong added.

Among resident households, the annualised growth in average real household market income per member between 2015 and 2025 was 4.8 per cent for those in the bottom decile, 3 per cent at the fifth decile, and 0.4 per cent for the top decile.

As a result, the income gap, measured by the Gini coefficient, has narrowed and is now at its lowest level on record, noted PM Wong.

The coefficient measures the level of income inequality within an economy, with 1 being absolute inequality and 0 being absolute equality.

“When we take into account taxes paid and government transfers received, the gap narrows further,” PM Wong said. “And that reflects the highly progressive nature of our system.”

Singapore’s Gini coefficient after government transfers and taxes was 0.379 in 2025, compared with 0.437 in 2015. This is the lowest figure since records began in 2015 based on household market income, which includes both employment and non-employment income.

The report also showed that for every dollar of tax paid by lower-income households, they receive about $7 in benefits.

Middle-income households receive about $2 for every dollar of tax paid, while for the top 20 per cent of households, the figure is about 20 cents.

“So everyone contributes, but those who are able contribute more. And everyone benefits, but those with greater needs receive much more,” said PM Wong. “And that’s how we keep our system fair and equitable.”

But a fair society is not just about the gaps visible today, but also about opportunities for tomorrow, he added. This means it is also about whether children can do better than their parents, or if families can look forward to having better lives over time. 

Here, too, the data is encouraging, with most Singaporeans today earning more than their parents did, said PM Wong. 

For instance, a median worker in his 30s in the mid-1990s would have earned about $2,300 per month. Today, a median worker in the same age group earns about $6,700, and the earnings are higher even after adjusting for inflation. 

Three in four children born into the bottom 20 per cent of households in the late 1970s and 1980s moved to higher income tiers in their adulthood, PM Wong added. 

However, MOF noted that the share of children born into these lower-income households and who remain in the bottom 20 per cent of incomes has increased over time.

There is also indication of a stronger association between a parent’s income and their children’s income outcomes over time, said the ministry.

PM Wong said the overall picture is encouraging, but Singapore cannot be complacent. 

The Government strengthens social mobility through many approaches, including strong education foundations, continual skills upgrading, and robust social support.

It also tracks the data on these issues closely to know whether its efforts are making a difference, PM Wong added. 

“Our mission is clear: to ensure that every Singaporean can realise their potential and share in our nation’s success,” he said.

Wei Kai is a correspondent at The Straits Times, where he covers politics. He also writes Unpacked, a weekly newsletter on Singapore politics and policy.

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