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Home » How Much Money Do You Need To Have: Good Salary In Singapore 2023

How Much Money Do You Need To Have: Good Salary In Singapore 2023

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Are you earning a good salary to cope with the increased costs of living in Singapore? The cost of living in Singapore is known to be high. And typically, the bulk of the expenses goes to housing, food, and transportation.

In this article, we will take a closer look at the different factors that determine a good salary in Singapore. As well as what the current median salary is in the country.

Overview of the cost of living in Singapore

It is no secret that the cost of living in Singapore is one of the highest in the world. I spend about $3,000 per month or close to $6,000 per month as a family of 3. 

Of course, everyone’s judgment of a good salary and “comfortable lifestyle” is different. And how much you spend on entertainment and dining out can vary greatly between individuals. And this may affect how much salary you’d need to lead a comfortable life here.

Average Salaries in Singapore

To get a sense of the good salary in Singapore, we could probably draw some benchmarks from the median salary in Singapore. According to the Ministry of Manpower, the median salary for Singaporeans and Permanent Residents (PR) in 2022 was $5,070 per month. 

This means that 50% of the citizens earn an income higher than $5,070. And another 50% of the population earns a salary that was lower. 

However, salary ranges vary widely depending on the job position, with some industries, such as finance and technology, offering significantly higher wages. 

Using Cost of Living to Determine a Comfortable Salary

To start determining how much salary we’d need, we can first look at the cost of living in Singapore. This includes expenses such as housing and food for our basic living and the costs of different entertainment options. 

Housing Costs – Renting and Owning a Property

Let’s start off with housing. With limited land space on the island, it is no surprise that rent or mortgage costs are so high. And this can quickly eat into your disposable income. 

If you’re looking at private housing options, the average cost of renting a one-bedroom apartment in Singapore is around $2,500 per month in 2023. It doesn’t really get better for buyers, as the average cost of buying a condo is around $1.3 million. Not forgetting the high-interest rates at this moment.

There are definitely cheaper options like our good ol’ HDB flats. While prices have greatly increased, prices for a decently-spaced 4-room flat are still less than a million. And you could still snag some deals in the heartland areas for $500,000 – $600,000. 

Let’s get an assumption that you will get a flat for $500,000 and take up the HDB loan of 2.6% for 25 years. This would translate into a monthly mortgage of $2,268 per household. And if your household consists of 2 pax, each would pay about $1,000.

As someone who has gotten my housing at a subsidized rate from the government, I would recommend young couples going through the BTO route to get their first flat.

Food Costs

Aside from housing, food is another major expense for Singaporeans. The average cost of a meal at a hawker center or coffee shop is around $5. Assuming that you don’t cook at home and eat out daily for all 3 meals, you would need at least $450 per month. 

And most of us probably would eat out at restaurants for socializing or to celebrate special occasions. A single outing to a mid-range restaurant would set you back at least $20 per pax with the increase of GST to 8%. 

Let’s assume that you eat at hawker centers for 90% of the time (81/90 meals) and 10% of the meals (9/90 meals) we will dine out at restaurants. We would need to factor in $585 every month for food.

Transport costs

Luckily in Singapore, car ownership is not mandatory as we are so well-connected. In fact, 8 in 10 households are within 10 minutes of a train station. And we also have good and reliable bus networks everywhere. 

Transport costs are definitely considered affordable with fares about $1-3 per way. And if you are a frequent traveler, you can even get a monthly transport pass for only $128, with unlimited transport on buses and trains! 

When people say transport is expensive in Singapore, they probably refer to car ownership costs. The cost of owning a car in Singapore is definitely at least 4 digits a month, typically in the $1,500 to $2,500 range. 

For a start, a new car inclusive of the COE can cost upwards of $100,000. And this is not even for an imported continental car. Costs can quickly add up with maintenance, parking, fuel, and other miscellaneous costs. 

Lifestyle choices (e.g. travel, dining out, entertainment)

Aside from these basic living expenses, lifestyle choices can also play a role in determining a comfortable salary. 

Singapore is honestly a small island with nothing much you can do other than dining out at restaurants, going to bars and clubs, and taking part in other leisure activities. 

The costs for these activities can easily add up, amounting to about $100 per outing depending on your choice. Let’s assume we go out once every weekend, spending $400 per month per couple or $200 per pax.

Also, since Singapore doesn’t have many places of attractions, it can quickly get boring. Be sure to also factor in your potential travel expenses. It is not uncommon for people to hop on short flights or ferries to different destinations like Bali or Bangkok for a short getaway. If one were to go on these short trips quarterly and assume that the holiday expenses cost $400-$500 per trip, it would average out to $150 monthly per pax.

What is a good salary in Singapore?

To determine what is a comfortable salary for you, you should work backward with the 50/30/20 rule. This constitutes channeling at least 50% of your income to retirement and savings.

With the above lifestyle assumptions, a person would spend about $2,063 every month. This would mean we would require a monthly income of at least $4,126 per month. 

If you’re responsible for one or more dependents, the income that you require is definitely higher as your expenses will be adjusted upwards as well. In my case, I care for my toddler whose expenses are split between my husband and me.

As a family of 4 – 2 working adults and 2 children the age of 1-6, a household would need $5,954 per month minimally. This is with the assumption that each child costs $914/month, and two children would cost about $1,828/month.

With the 50/30/30 rule, the total household income should be at least $11,908/month for the household to be comfortable, and this would mean each working adult can aim for an income of at least $5,954/month. 

Spending your salary wisely

As we progress in our careers, a higher salary will definitely give us more leeway to cover insurance needs and other leisure activities, which could definitely make our lifestyles more comfortable. 

And when that happens, pay special attention not to fall into the trap of lifestyle inflation. When you build up a meaningful stash of capital, money can be used to continue working for you and earn you more passive income for your retirement or rainy days. 

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