The Singapore Workfare Income Supplement (WIS) scheme aims to enhance the financial stability of self-employed individuals (SEPs) and lower-income workers. Launched in 2007, this program has distributed over S$10.5 billion by February 2024, benefiting more than 1,035,000 people.
For Work Years (WY) 2023 and 2024, eligible SEPs receive up to S$2,800 annually through CPF contributions and cash payments. From 2025, this amount will increase to S$3,267.
Importance of the Scheme
The WIS scheme is especially crucial for gig workers, freelancers, and others with irregular incomes. It helps SEPs save for retirement, healthcare, and housing, while also providing cash for daily expenses. By focusing on both immediate and long-term needs, the program ensures beneficiaries have financial security and stability. Additionally, Workfare encourages SEPs to contribute to their MediSave accounts and maintain steady employment, promoting sustainable income and savings. This aligns with Singapore’s broader goal of inclusive economic growth.
Workfare Income Supplement 2025 Details
The Workfare Income Supplement program supports lower-income workers, including self-employed persons (SEPs), by combining CPF contributions and cash payments. This dual approach helps workers manage immediate financial needs while building long-term savings for retirement, housing, and healthcare.
CPF Contributions
A significant part of WIS is directed to CPF accounts, particularly the MediSave account for SEPs, ensuring savings for essential needs like retirement, housing, and medical expenses.
Cash Payments
The cash component offers immediate financial relief, especially valuable for SEPs with inconsistent earnings.
Work Incentives
The program motivates individuals to maintain regular work and MediSave contributions, promoting sustainable financial habits and stability.
Who is Eligible for the WIS Program?
To qualify for Workfare, SEPs need to meet the following conditions:
- Age: At least 30 years old by December 31 of the work year.
- Income: Annual net trade income of S$30,000 or less.
- CPF Contributions: Regular MediSave contributions.
- Citizenship: Must be a Singaporean citizen.
- Property Ownership: Can own only one property.
- Assessable Income: Spouse’s assessable income must not exceed S$70,000 (if married).
- Property Value: The annual property value must not exceed S$21,000 starting from WY 2024.
Special rules apply to individuals with disabilities or those under ComCare assistance.
Singapore WIS 2025 Payment Structure
Workfare payments are made up of two main parts, each aimed at helping self-employed persons (SEPs) with different financial needs:
CPF Contributions
Most of the payment goes into the CPF MediSave account. This helps SEPs save for important future needs like retirement, housing, and healthcare. By building up their CPF savings, SEPs can feel more secure about their long-term finances and have funds ready when needed for major expenses.
Cash Payments
The remaining payment is provided in cash, amounting to 10% of the total. This cash serves as immediate assistance for daily expenses such as groceries, transportation, and utility bills. For self-employed individuals with irregular incomes, this cash is particularly valuable in addressing urgent needs and managing income fluctuations.
The payment structure is clearly outlined for both the current period and future changes, as shown below:
| Component | Amount (2023-2024) | Amount (2025 onward) | Purpose |
|---|---|---|---|
| CPF Contributions | S$1,800 | S$2,940 | Helps build savings for future needs. |
| Cash Payments | S$1,000 | S$327 | Provides immediate financial relief. |
| Total | S$2,800 | S$3,267 |
MediSave Contribution Requirements
To qualify for Workfare payments, self-employed persons (SEPs) must make MediSave contributions. These contributions ensure SEPs save for healthcare and medical needs. SEPs earning below S$6,000 annually must make these contributions to qualify for Workfare payments. They have up to two years after the work year to fulfill this requirement.
| Age Group | Required MediSave Contribution (S$) |
|---|---|
| 30 to 34 years | 240 |
| 35 to 44 years | 270 |
| 45 to 49 years | 300 |
| 50 years and above | 315 |
How to Apply for Workfare Income Supplement?
Self-employed individuals who are eligible for Workfare payments need to follow these steps:
- Register as an SEP: Ensure you are registered with the Inland Revenue Authority of Singapore (IRAS). This registration establishes your income credibility and confirms your eligibility for Workfare payments.
- Declare Your Income: Submit your income declaration to IRAS during the annual tax filing period. Providing accurate income details is crucial to avoid delays in processing and receiving your payments.
- Contribute to MediSave: Make the necessary MediSave contributions based on your declared income. These contributions are vital for maintaining healthcare coverage and ensuring long-term financial security.
- Receive Payments: Once your eligibility is confirmed, the Workfare payments will be disbursed automatically, providing you with the financial support you qualify for.
Payment Disbursement Timeline
Payments are credited annually for the previous year’s work. The earliest disbursement is in April, provided:
- The income declaration is completed by IRAS.
- MediSave contributions are made by March 31 of the following year.
| Scenario | Deadline |
|---|---|
| Income declaration to IRAS | 1 March to 18 April |
| MediSave contributions | Within 30 days of notification |
| Final deadline for MediSave contributions | 31 December, two years after WY |
Delays in meeting these deadlines can result in later payments.
