Question :
Mr Dennis Tan Lip Fong: To ask the Minister for Trade and
Industry (a) whether published data for Singapore's Gini coefficient measuring
income inequality includes both employer and employee CPF in the definition of
income; and (b) if it does, what will be the latest Gini coefficient data if
CPF income is excluded.
Written reply:
- The Gini coefficient published by the Department of
Statistics (DOS) is computed based on household income from work. Both employer
and employee CPF contributions are included in the definition of household
income from work. This is because CPF contributions are a significant component
of compensation from work, and can be used by households for housing,
healthcare and investment purposes. Nonetheless, DOS also publishes a Gini
coefficient that excludes employer CPF contributions from household income from
work.
- Both Gini coefficients are available on DOS' website.
In 2017, the Gini coefficient which includes employer CPF contributions was
0.459, while the Gini coefficient which excludes employer CPF contributions was
0.468. The former is lower because there is a cap on employer CPF contributions
for employees who have reached the wage ceiling of $6,000.
- DOS does not publish a Gini coefficient that excludes
both employer and employee CPF contributions from household income from work.