Employment income remained the largest source of household income, though its share fell to 79.6 per cent in 2025 from 81.1 per cent in 2024.
While income from work was the main source for households in the second to 10th deciles, households in the lowest decile relied mainly on non-employment income.
For this group, investment income, largely interest earned from CPF balances, made up 40.9 per cent of household income per member. Other income, mostly from CPF payouts and the Lifelong Income for the Elderly scheme, accounted for 37 per cent.
Rental income formed 3.2 per cent of income per household member in the lowest decile, with the remaining 19.2 per cent coming from work.
TRANSFERS, TAXES AND INEQUALITY
Households in the first to seventh income deciles received more in government transfers than the amount of taxes they paid.
On average in 2025, resident households received S$7,300 per household member in government transfers, down from S$7,725 in 2024. This was attributed to the end of one-off schemes introduced in 2024, including the Majulah Package and Cost-of-Living Special Payment.
Residents living in one- and two-room Housing and Development Board flats continued to receive the most support, averaging S$16,519 per household member, more than double the overall average.
For every dollar of tax paid by lower-income households, they receive about S$7 in benefits, said Mr Wong, who is also Finance Minister.
Middle-income households receive about S$2 for every dollar of tax paid, while the top 20 per cent receive about S$0.20, he said.
“So everyone contributes but those who are able contribute more. And everyone benefits, but those with greater needs receive much more. And that’s how we keep our system fair and equitable.”