The WIS or Workfare Income Supplement scheme in itself is a comprehensive social security framework for Singapore, aimed solely at financially uplifting and later talking retirement for lower-income workers. Indeed, in 2025, major changes will roll out to the existing WIS to augment support to an even wider set of beneficiaries. This article talks about the enhancements, such as the new payment scheme, eligibility conditions, and payment schedules, among others.
About the Workfare Income Supplement (WIS)
The Workfare Income Supplement (WIS) was initiated in 2007, and complements the income of lower-wage workers who are employed regularly and increases their savings in the Central Provident Fund (CPF). Immediate relief is provided together with future financial security through the savings in the CPF.
Key Improvements that will be Effective from 2025
- Effective from 2025, the cap on monthly income for eligibility will increase from $2,500 to $3,000 to reflect wage increases and allow more workers to qualify for the WIS. Workers will thus be able to earn higher salaries yet still benefit from the scheme.
- All maximum annual payouts under the WIS will be raised for all age bands, with increased payouts for older workers. The maximum payouts now range from $2,450 for 30-34-year-olds to $4,900 for those above 60, and also include persons with disabilities.
- Starting from March 2025, WIS payments to eligible platform workers engaged in ride-hailing or food delivery services will be made on a monthly basis instead of annually. This is in line with the new regimen whereby platform operators will start deducting monthly CPF contributions, thus giving workers more regular rhe area of financial support.
Specifics of Eligibility Criteria
There are various requirements listed above for qualifying for WIS from 2025. For example, applicants must be at least 30 years old as of 31 December of the work year, though persons with disabilities can be eligible regardless of age. The gross month-one income includes basic salary and any other wages, such as overtime pay, commissions, and bonuses. The gross monthly income, therefore, must be at least $500 and not more than $3,000 for the month worked and, on average, in the last 12 months.
Applicants will, therefore, have to be residing in a property with an annual value of $21,000 or below- calculated as of 31 December of the preceding year- and not owning more than one property. No more than one property should be owned by the individual and the spouse, in case they are married. The reported income of the spouse for the preceding Year of Assessment should not exceed $70,000.
Payment Allocation and Schedule
WIS payments are structured to promote both immediate financial relief and long-term savings. Employees receive 40% of WIS in cash, and 60%is credited to their CPF accounts. Self-employed persons receive 10% of WIS in cash, and 90% is credited to their MediSave accounts. This allocation encourages prudent financial planning and ensures that workers are better prepared for future needs.
For platform workers, WIS payments will be disbursed monthly starting in March 2025. Payments will be credited via PayNow-NRIC or bank accounts at the end of each work month, with GovCash disbursements following in the first week of the subsequent month. This monthly payment structure ensures timely support, aiding workers in managing their finances more effectively.
Conclusion
The enhancements to the Workfare Income Supplement scheme in 2025 demonstrate Singapore’s ongoing commitment to supporting lower-wage workers. By increasing income caps, boosting annual payouts, and introducing monthly payments for platform workers, the scheme aims to provide more comprehensive and timely support. Eligible individuals are encouraged to stay informed about these changes and ensure they meet the necessary criteria to benefit from the enhanced support.