The Workfare Income Supplement (WIS) scheme by the Singapore Government will now see considerable enhancements from January 1, 2025, to provide greater financial assistance to lower-wage workers, including platform workers, for continued employment and promote retirement savings. This article describes the changed eligibility criteria, payment schedule, and payout increases under the modified WIS program.
What Is Workfare Income Supplement (WIS)?
Introduced in 2007, the WIS scheme supplements the incomes and Central Provident Fund (CPF) savings of lower-wage Singaporean workers. It is a key strategy for uplifting lower-wage workers and reducing income disparities.
New Eligibility Criteria With Effect From 2025
From January 1, 2025, the eligibility criteria for WIS will thus be updated:
- Citizens of Singapore aged thirty (30) years and older as of December thirty-one in the work year. Where persons have a disability, WIS will apply regardless of age.
- Earn a gross monthly income which covers net earnings from platform work of not less than gross $500 and not more than gross $3,000 for the month worked. An average gross monthly income over the past 12 months of not greater than $3,000.
- Must live in property with an annual value of $21,000 and below as of December thirty-one of the preceding year. Ownership of not more than one property.
- Married couple: All property ownership counted toward the limit of one property. The spouse’s assessable income must not exceed $70,000 in the preceding Year of Assessment.
- These amendments seek to ensure that the scheme continues to encompass lower-wage workers even as they begin earning better wages.
Increased Amount of Payouts
The cap for WIS annual payouts will be expanded across all age groups from 2025 onwards:
- Ages thirty to thirty-four qualify for up to S$1,700 a year.
- Ages thirty-five to forty-four qualify for up to S$2,250 a year.
- Ages forty-five to fifty-four will be eligible for up to S$2,850 a year.
- Ages fifty-five to fifty-nine are eligible for a maximum of S$3,150 annually.
- Those aged sixty and above will receive a maximum of S$3,267 a year. Persons with disabilities will also qualify for the maximum payout amount equal to that given to persons aged sixty and above.
Such enhancements will benefit around half a million Singaporeans.
Payment Schedule and Mode of Payment
For platform workers, WIS payments will move from annual to monthly from 2025. The actual payment will be made to the beneficiaries approximately two months after the work month. For example, work done during the month of January shall receive a payout by the last day of March.
Cash shall be given at ten percent of WIS, and ninety will be paid to the worker’s account under MediSave. The cash portion will be credited to the worker’s PayNow NRIC-linked bank account. If unavailable, it will be credited to the government benefit receiving bank account or via GovCash if no account is registered.
CPF Contributions for Platform Workers
From 2025 onwards, platform operators shall pay CPF contributions to the platforms’ workers monthly. This is in line with the employers’ payment practice and will help provide for workers’ retirement and health care savings. Fully phasing-in the CPF contribution rates for platform workers to those applicable to employees by 2029 will permit the eligible platform workers who have opted for the enhanced CPF contributions to receive enhanced WIS payments comparable to those of employees.
Conclusion
The improvements to the Workfare Income Supplement scheme demonstrate Singapore’s commitment to assisting lower-wage workers through increasing the amount of assistance available, expanding eligibility criteria, and ensuring timely payment. Such initiatives, therefore, will try to narrow the gap between the rich and poor and to champion social mobility, hence fortifying the value of a fair and inclusive society that Singapore aims to achieve.