The Workfare Income Supplement (WIS) scheme is a key support program for self-employed individuals (SEPs) and lower-income workers in Singapore. Established in 2007, the WIS program has provided significant financial assistance to those earning below a certain threshold. By February 2024, more than S$10.5 billion had been distributed, benefiting over 1 million individuals.
For the Work Years (WY) 2023 and 2024, eligible SEPs can receive up to S$2,800 annually through a combination of CPF contributions and cash payments. Starting in 2025, the amount will increase to S$3,267, offering even greater support to SEPs.
Who is Eligible for the WIS Program?
To qualify for the Workfare Income Supplement, SEPs need to meet specific eligibility criteria:
- Age: Must be at least 30 years old by December 31 of the work year.
- Income: Annual net trade income should not exceed S$30,000.
- CPF Contributions: Regular MediSave contributions are required.
- Citizenship: Applicants must be Singaporean citizens.
- Property Ownership: Can own only one property.
- Spouse’s Income: If married, the spouse’s assessable income should not exceed S$70,000.
- Property Value: Starting from WY 2024, the annual property value must not exceed S$21,000.
Special provisions apply to individuals with disabilities and those receiving ComCare assistance.
Singapore WIS 2025 Payment Structure
The WIS payments consist of two main components, each serving different financial needs:
- CPF Contributions: The majority of the payment is directed towards the CPF MediSave account, which helps SEPs build savings for retirement, housing, and healthcare. For the period from 2023 to 2024, the contribution is S$1,800, increasing to S$2,940 from 2025 onward.
- Cash Payments: The remaining portion of the payment is provided as cash, offering immediate financial relief. For 2023–2024, this cash amount is S$1,000, which will decrease to S$327 from 2025 onward. This is particularly beneficial for self-employed individuals with fluctuating incomes.
The total payment for SEPs will increase from S$2,800 in 2023-2024 to S$3,267 starting in 2025.
MediSave Contribution Requirements
To be eligible for Workfare payments, SEPs must make regular MediSave contributions. These contributions ensure that SEPs have adequate healthcare savings for the future. For those earning below S$6,000 annually, MediSave contributions are required to qualify for Workfare. SEPs have up to two years after the work year to complete these contributions.
The MediSave contribution requirements are as follows:
- 30 to 34 years: S$240
- 35 to 44 years: S$270
- 45 to 49 years: S$300
- 50 years and above: S$315
How to Apply for Workfare Income Supplement?
To apply for the Workfare Income Supplement, self-employed individuals must take the following steps:
- Register as an SEP: Ensure registration with the Inland Revenue Authority of Singapore (IRAS) to verify income and eligibility.
- Declare Your Income: Submit your income declaration during the annual tax filing period. Accurate income reporting ensures timely payments.
- Contribute to MediSave: Make the necessary MediSave contributions based on your declared income. These contributions are critical for qualifying for Workfare.
- Receive Payments: Once eligibility is confirmed, Workfare payments will be automatically disbursed.
Payment Disbursement Timeline
Workfare payments are made annually for the previous year’s work. The earliest payment is disbursed in April, provided the following conditions are met:
- Income declaration: Must be completed between March 1 and April 18.
- MediSave contributions: Must be made by March 31 of the following year.
If these deadlines are missed, payments may be delayed. The final deadline for MediSave contributions is December 31, two years after the work year.
Conclusion
The Workfare Income Supplement scheme is vital for supporting self-employed individuals and lower-income workers in Singapore, helping them save for the future and manage immediate financial needs. By providing a combination of CPF contributions, cash payments, and MediSave contributions, the program promotes long-term financial security while encouraging sustainable work habits. With increased payments starting in 2025, the WIS scheme continues to be an important part of Singapore’s commitment to inclusive economic growth.