The Workfare Income Supplement (WIS) scheme in Singapore is undergoing major changes in 2025, with the goal of putting more money into the pockets of lower-wage workers. These changes will impact employees, self-employed persons (SEPs), and platform workers, providing them with increased financial support and greater opportunities for skills training. This article explores these upcoming changes, offering you a clear understanding of how they affect you and what steps you can take to benefit from them.
Workfare 2025
| Key Changes | Details |
|---|---|
| Increased Annual Payouts | WIS payout increases across all age groups, with the highest being S$4,900 for workers aged 60 and above. |
| Expanded Eligibility | The qualifying monthly income cap rises from S$2,500 to S$3,000. |
| Monthly Payments for Employees | Eligible employees will now receive WIS payments monthly, including 40% cash and 60% CPF contributions. |
| Support for Self-Employed Persons (SEPs) | SEPs will continue receiving annual payments based on their net trade income and MediSave contributions. |
| Platform Workers Included | Platform workers will now also receive monthly WIS payments, automatically assessed based on income. |
| Workfare Skills Support (WSS) | Enhancements to WSS will help lower-wage workers access affordable training with allowances up to S$300 for part-time trainees. |
The Workfare 2025 changes are a welcome development for lower-wage workers in Singapore, offering higher payouts, expanded eligibility, and more opportunities for skills development. Whether you’re an employee, self-employed, or a platform worker, these changes are designed to provide greater support and financial security.
By taking advantage of these updates, you can enjoy more consistent financial assistance, invest in your future through CPF contributions, and enhance your skills to boost your earning potential.
Introduction
In recent years, the cost of living has been rising steadily in Singapore, and many workers have struggled to keep up. To address this, the government has committed to enhancing support for lower-wage workers through the Workfare Income Supplement (WIS) scheme. The changes introduced in 2025 will provide more financial assistance and give workers more opportunities for skills development, ultimately improving their livelihoods.
The WIS program has been an essential safety net for many low-income workers in Singapore, offering cash and CPF (Central Provident Fund) contributions to help supplement their wages. In 2025, the scheme will undergo some significant updates to reflect the challenges posed by inflation and the evolving job market.
In this article, we’ll explore the details of the new changes, their impact on workers, and how you can benefit from the updated program. Whether you’re a full-time employee, a self-employed person, or a platform worker, this guide will help you navigate the changes and make the most out of the Workfare 2025 improvements.
What is the Workfare Income Supplement (WIS)?
Before diving into the specifics of the 2025 changes, let’s start with a quick refresher on the Workfare Income Supplement (WIS). This program was introduced in 2007 by the Singapore government to provide financial support to lower-wage workers, ensuring they have a minimum level of income.
The WIS scheme is unique because it offers both cash payments and CPF contributions, which help workers save for retirement. It is designed for Singaporean workers aged 30 and above who earn a monthly income of S$2,500 or less. The amount a worker receives depends on their age, income, and CPF contribution history.
Key Objectives of WIS:
- Financial Support: To supplement low wages and help workers cope with rising living costs.
- Encouraging Savings: By channeling part of the support into CPF, the scheme encourages workers to save for their future.
- Skills Development: WIS encourages workers to upgrade their skills and increase employability by offering additional benefits under the Workfare Skills Support (WSS).
How Will Workfare 2025 Benefit Workers?
The 2025 changes to the WIS scheme are designed to help more workers qualify for the program and receive larger payouts. Let’s break down the key changes and how they will impact you:
1. Increased Annual Payouts Across All Age Groups
One of the most noticeable changes in Workfare 2025 is the increase in annual payouts for eligible workers. These payouts are based on a worker’s age and income. The government has raised the maximum annual payout for each age group to provide more financial support.
Here’s a breakdown of the increased annual payouts:
- 30–34 years: Up to S$2,450 per year
- 35–44 years: Up to S$3,500 per year
- 45–59 years: Up to S$4,200 per year
- 60 years and above: Up to S$4,900 per year
- Persons with disabilities: Up to S$4,900 per year
This increase in payouts is a significant improvement and aims to ensure that lower-wage workers can better cope with the rising cost of living.
2. Expanded Eligibility Criteria
Another important change is the expanded eligibility criteria. The qualifying monthly income cap for WIS has been raised from S$2,500 to S$3,000. This means that more workers will be able to qualify for the program and receive financial support.
Additionally, the annual value of the property you own must not exceed S$21,000, and married applicants must own no more than one property. Your spouse’s annual income should not exceed S$70,000 for you to qualify.
3. Monthly Payments for Employees
Starting in 2025, eligible employees will receive monthly WIS payments. These payments will be split into two parts:
- 40% in cash
- 60% in CPF contributions
This shift to monthly payments means that workers will no longer have to wait for an annual payout. The payments will be credited directly to the worker’s bank account, which is linked to their PayNow NRIC or CPF account.
4. Support for Self-Employed Persons (SEPs)
Self-employed persons (SEPs) will continue to receive annual WIS payments based on their net trade income and MediSave contributions. The payment structure for SEPs remains largely unchanged, but the overall support has been adjusted to reflect the unique needs of self-employed individuals.
5. Platform Workers Included
With the rise of the gig economy, platform workers (those working for ride-hailing, delivery services, and other similar platforms) will now also be eligible for monthly WIS payments. The payments for platform workers will be automatically assessed based on the income they declare with platform operators.
Enhancements to Workfare Skills Support (WSS)
In addition to the financial benefits provided by WIS, the Workfare Skills Support (WSS) scheme is being enhanced in 2025 to help workers develop their skills. This is important because skills development can help lower-wage workers improve their earning potential and secure better job opportunities.
Key WSS Changes:
- Part-time trainees: Will receive a fixed monthly allowance of S$300 to encourage participation in part-time skills upgrading programs.
- Full-time trainees: Will receive up to 50% of their average income from the past 12 months, providing greater support for those seeking to improve their qualifications.
These changes make it easier for workers to access skills training, which can lead to higher-paying jobs and greater career stability.
Why These Changes Matter
Supporting Workers in the Gig Economy
With more workers turning to platform-based and freelance jobs, it’s crucial to ensure that they receive the same level of support as full-time employees. The inclusion of platform workers in the WIS scheme is a forward-thinking step that acknowledges the rise of the gig economy. This will help freelancers and platform workers like drivers, delivery personnel, and others receive consistent financial support, much like traditional employees.
Empowering Workers with Skills
The Workfare Skills Support (WSS) enhancements are particularly important. By providing better financial incentives to workers upgrading their skills, the government is helping them invest in their future. Workers can now train without worrying about immediate income loss, as they receive allowances to support their learning.
Skills development will also contribute to a more competitive workforce and prepare workers for jobs that may pay better and have more stability in the long term.
Addressing Inflation and Rising Costs
In a period of rising living costs, the increased payouts from WIS will help workers manage their daily expenses more effectively. The cost of goods, rent, and utilities in Singapore has been climbing, and this additional financial support is timely. By increasing WIS payouts and providing more frequent payments, the government is aiming to reduce the financial stress on workers and ensure that they can maintain a comfortable standard of living.
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Frequently Asked Questions About Workfare 2025
Q: Who is eligible for the Workfare Income Supplement (WIS)?
A: Workers aged 30 and above who earn S$3,000 or less per month and meet the property ownership criteria are eligible for WIS. More information can be found on the official CPF website.
Q: How will the monthly WIS payments be made?
A: Eligible employees will receive 40% cash and 60% in CPF contributions through their linked PayNow NRIC account or a registered bank account.
Q: Will self-employed persons (SEPs) still receive WIS?
A: Yes, SEPs will continue to receive annual WIS payments based on their net trade income and MediSave contributions.
Q: Are platform workers included in the WIS scheme?
A: Yes, platform workers will now also receive monthly WIS payments, automatically assessed based on the income they report to platform operators.
