Singapore’s Workfare Scheme Overhauled: Singapore’s Workfare Income Supplement (WIS) scheme has been a pillar of support for lower-wage workers since its launch in 2007. Designed to top up salaries and boost retirement savings, it encourages consistent employment among Singaporeans.
Starting January 1, 2025, major enhancements to the WIS scheme will take effect. These changes aim to increase payouts, expand eligibility, and provide greater long-term financial support to low-income workers, including older employees and self-employed persons.
Singapore’s Workfare Scheme Overhauled
| Enhancement | Before 2025 | From 2025 Onwards |
|---|---|---|
| Maximum Annual Payouts | Up to $4,200 | Up to $4,900 |
| Income Eligibility Cap | $2,500/month | $3,000/month |
| Property Annual Value Threshold | $13,000 | $21,000 |
| Payout for Employees | 40% Cash, 60% CPF | 40% Cash, 60% CPF |
| Payout for Self-Employed | 10% Cash, 90% MediSave | 10% Cash, 90% MediSave |
The upcoming 2025 Workfare Scheme overhaul is a win for thousands of hardworking Singaporeans. With higher payouts, expanded eligibility, and greater long-term financial security, it ensures that every effort counts, especially for those earning less.
What’s Changing and Why It Matters
1. Higher Annual Payouts
Workers across all age brackets will receive increased annual payouts. This directly boosts their take-home pay and long-term savings.
- Ages 30–34: $2,450/year (up from $2,100)
- Ages 35–44: $3,500/year (up from $3,000)
- Ages 45–59: $4,200/year (up from $3,600)
- Ages 60 and above, and persons with disabilities: $4,900/year (up from $4,200)
This increase ensures more meaningful support for workers as they age or face additional challenges like disabilities.
2. Expanded Income Cap
Previously, workers earning over $2,500/month were excluded. In 2025, the gross monthly income cap rises to $3,000, making more workers eligible.
This means that even if you’ve recently received a raise or taken on an additional job, you could now qualify.
3. Higher Property Annual Value Threshold
Eligibility was also restricted by the annual value (AV) of your residence (used as a proxy for wealth). The AV cap rises from $13,000 to $21,000, reflecting housing market changes and making the scheme fairer for those living in higher-value flats but still earning low wages.
How the Payouts Work
For Employees
If you’re employed by a company:
- 40% of WIS is paid in cash directly to your bank account.
- 60% goes into your CPF account, growing your retirement nest egg.
Payments are made monthly, ensuring consistent financial support.
For Self-Employed Persons (SEPs)
If you’re self-employed (like a freelancer, hawker, or driver):
- You’ll receive 10% in cash
- 90% goes into MediSave, helping with future healthcare needs.
SEPs must declare income and make MediSave contributions to qualify. Payments are made once a year.
Who Is Eligible?
To receive WIS in 2025, you must:
- Be a Singapore citizen
- Be 35 years old and above (or any age if you have a disability)
- Earn $3,000 or less per month in gross income
- Live in a property with an annual value of $21,000 or less
- Not own more than one property
- For SEPs, contribute to MediSave and declare your income
How to Check Your Eligibility and Payments
You can quickly check your WIS status online:
- Go to the Workfare e-Service Portal
- Log in using Singpass
- View your eligibility, payment amount, and payment dates
Make sure your bank account and personal info are updated to avoid delays in payment.
Real-Life Examples
Case Study: Sarah, 36, Part-Time Admin Assistant
- Monthly Income: $2,800
- Living in: 4-room HDB flat (AV: $18,000)
Before 2025: Sarah didn’t qualify due to her income.
From 2025: She qualifies! She’ll receive $3,500 a year, with $1,400 in cash and $2,100 in CPF contributions.
Case Study: Ali, 62, Self-Employed Delivery Driver
- Annual Income: $28,000
- Declared Net Trade Income: Yes
- MediSave Contributions: Yes
Ali qualifies for the maximum payout of $4,900, mostly into his MediSave, helping with future hospital bills and insurance premiums.
Why This Matters
The enhanced WIS scheme reflects Singapore’s commitment to inclusive growth. These changes:
- Reward consistent work, even in part-time or gig roles
- Support older workers who may not have strong CPF savings
- Encourage MediSave and CPF contributions, promoting self-reliance
This approach helps bridge income gaps, boosts dignity in work, and prepares individuals for future healthcare and retirement needs.
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Frequently Asked Questions (FAQs) about Singapore’s Workfare Scheme Overhauled
Will I automatically receive WIS if I’m eligible?
Yes, if you meet the criteria and your information is up to date, WIS will be disbursed automatically.
What if I work multiple jobs?
Your total combined gross income across all jobs is assessed. As long as it’s $3,000/month or below, you’re considered.
Do I need to apply?
Employees don’t need to apply. Self-employed persons must declare income and contribute to MediSave.
Can I still qualify if I live with family in a high-value property?
WIS considers the annual value of the property you live in, not who owns it. If it exceeds $21,000, you may not qualify.
Is WIS taxable?
No, WIS payouts are not taxable.
