The Workfare Income Supplement (WIS) scheme gives boosted financial support for the citizens of Singapore, beginning January 2025. Added in the WIS enhancement updates are supplement payment amounts up to $3,267 each year for eligible persons applicable mainly to self-employed persons and platform workers.
Indeed, this new measure reflects the continued government commitment toward support for the lower wage workers while fostering sustained employment and contributions for future lives through retirement and healthcare savings.
Understanding the Workfare Income Supplement (WIS) Scheme
The Workfare Income Supplement (WIS) scheme complements the earnings and, thereafter, retirement savings of lower-waged Singaporeans. It promotes sustained employment while offering direct cash benefits as well as contributions toward savings accounts.
While it has previously only been for employees, it has now been extended to include people in the same space as food delivery riders and ride-hailing drivers and freelancers. For 2025, the WIS features some critical improvements. The employee can get up to $4,900 in one year, while the self-employed or platform worker can get a maximum of $3,267.
Payment disbursements will, however, be different for the two groups. Employees will be paid monthly, receiving 40% cash and the remaining 60% credited to their CPF accounts. For self-employed, they will receive an annual lump-sum payment, with 10% given out as cash and 90% channeled to their MediSave accounts.
Improvements Starting in January 2025
Starting January 2025, the WIS will be introducing such major improvements. An increase in the income ceiling from $2,500 to $3,000 will allow many more workers to qualify. The maximum annual payout for employees is now $4,900, and self-employed individuals will receive not more than $3,267.
Another major development is the extension of the scheme to platform workers so that gig workers can also have access to financial support and healthcare savings through MediSave contributions.
Who Is Eligible for the WIS Supplement?
WIS payment is tied up with several eligibility criteria. An applicant also needs to be a citizen of Singapore and at least 30 years old at the end of the work year. Unlike any other person, a person with a disability is exempted from any age limit to qualify. The monthly income should be from $500 to $3,000, and the property should not exceed an annual valuation of $21,000. They should own only one property.
In a condition of being married, the married couple must not have a combined assessable income exceeding $70,000 and also, together, they should not own more than one property. Employees must have CPF contributions at least three months during the calendar year for the work performed. Self-employed and platform workers must declare NTI to IRAS and contribute their respective MediSave based on income and age.
When will the payment be made?
The payment is expected to be made monthly for the employees. Generally, the payment comes within two months of the month of work. For instance, work done in January 2025 would see WIS credited by the end of March 2025.
The duration of payments for self-employed and platform workers would stretch out to be annual and typically within April the following year after the declaration of income and the contributions to MediSave.
How Will This Payment be Received
Employees do not need to apply for WIS. The process is automatic, and eligibility is assessed using CPF contribution records. Self-employed and platform workers must declare their annual income to the Inland Revenue Authority of Singapore (IRAS), make the requisite contributions towards MediSave, and complete the entire process before March 31 of the following year in order to automatically receive their WIS payment.
Why This Supplement Is Important
This enhanced WIS scheme will provide meaningful support to the low-income Singaporeans. Besides easing financial burdens through cash disbursement, it takes a step further on encouraging savings for retirement and health through contributions and balances in CPF and MediSave. The recognition of platform workers reflects the evolving workplace of gig economy and bigger coverage of workers already having it.
They can utilize their cash disbursement wisely for daily essentials or bill payments while keeping track of their CPF and MediSave accounts for long-term planning. They could also think of using government training subsidies to upgrade their skills and eventually improve earning potential over time.