The Workfare Income Supplement (WIS) scheme is a central part of Singapore’s social support system for low-income earners. It provides both cash payouts and Central Provident Fund (CPF) top-ups, ensuring that lower-wage employees enjoy better financial security today while saving for their future.
Since its launch in 2007, the WIS (Workfare Income Supplement) scheme has undergone several updates to align with changes in wages and living costs. The latest revision, effective January 1, 2025, raises the annual payout ceiling for employees to SGD 4,900, mainly benefiting older workers. This change supports Singaporeans in essential industries who earn modest wages.
Unlike other financial aid programs, WIS payments are automatic. Workers do not need to apply; instead, the CPF Board determines eligibility based on employer contributions. This system guarantees that eligible employees receive their payments on time without additional administrative effort.
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Singapore WIS Scheme Objectives and Significance
The WIS scheme was established to supplement the earnings of workers with lower incomes while simultaneously encouraging them to stay active in the workforce. It reflects Singapore’s broader strategy of rewarding work rather than dependency, creating a sustainable approach to social support.
The dual payout structure provides immediate cash payments alongside CPF contributions for savings. This helps employees manage essential expenses while building long-term assets for housing, healthcare, and retirement. The policy also seeks to reduce income disparities and ensure that lower-wage Singaporeans benefit from the nation’s progress.
Eligibility Conditions for Employees
Eligibility for WIS depends on several factors, including income, employment status, and residency. To qualify, a person must be a Singapore Citizen and at least 30 years old by the end of the work year. For persons with disabilities, the age condition is waived.
Employees must have a Gross Monthly Income (GMI) of at least SGD 500 but not exceeding SGD 3,000. The Average Gross Monthly Income (AGMI) across the past twelve months should also stay within the SGD 3,000 limit. In addition, the employee must have CPF contributions made by their employer for the months worked, ensuring that the data is verifiable and transparent.
There are also asset-based criteria. Workers must not own more than one property, and the Annual Value (AV) of their residence must fall within the permitted threshold. These conditions ensure that the scheme targets explicitly genuine lower-income earners who rely primarily on wages for their livelihood.
Maximum Annual Payout Based on Age
From 2025 onward, the WIS structure has been revised to provide higher payouts for older workers who typically face more financial obligations and may find it harder to increase their income levels. The scheme recognises their contribution by offering larger benefits in proportion to their age group.
| Age Group (Years) | Maximum Annual Payout (SGD) |
|---|---|
| 30 to 34 | 2,100 |
| 35 to 44 | 2,800 |
| 45 to 54 | 3,500 |
| 55 to 59 | 4,200 |
| 60 and above | 4,900 |
The highest payout, SGD 4,900, applies to employees aged 60 years and above. This reflects Singapore’s focus on supporting older workers who continue to participate in the workforce.
Payout Distribution Between Cash and CPF
Each eligible employee receives WIS as a combination of cash payments and CPF contributions. The structure allocates 40% of the payout in cash for immediate needs and 60% in CPF to boost retirement, housing, and healthcare savings.
For an employee receiving the maximum entitlement of SGD 4,900, approximately SGD 1,960 is disbursed in cash, while SGD 2,940 is credited directly into CPF accounts. The CPF portion is divided among the Ordinary Account, MediSave Account, and Special or Retirement Account, depending on the individual’s age.
| Component | Percentage | Amount (SGD) | Allocation / Method |
|---|---|---|---|
| Cash Portion | 40% | 1,960 | Paid via PayNow, bank transfer, or GovCash |
| CPF Portion | 60% | 2,940 | Distributed across OA, MediSave, and SA/RA |
This structured system promotes both financial discipline and long-term security. The cash component ensures liquidity, while the CPF credit enhances the worker’s retirement and healthcare readiness.
Payment Timeline and Frequency
Payments under the WIS scheme are made every month for employees. Each month’s work is recognised with a payout approximately two months later. For instance, work completed in January results in payment by the end of March.
Employees receive the cash portion via PayNow (linked to NRIC) or directly to their bank account. If neither method is available, payments are made through GovCash, a secure and accessible government payment platform. The CPF portion is automatically credited to the employee’s respective accounts.
For self-employed persons, WIS payments are made once a year after they declare their Net Trade Income (NTI) to the Inland Revenue Authority of Singapore (IRAS) and complete their required MediSave contributions. Once these obligations are met, payments are usually disbursed by April of the following year.
Calculation of Payout Amount
The payout each employee receives depends on three main variables: age, income level, and months worked. The CPF Board calculates this amount using employer-submitted contribution data.
Older workers with consistent employment throughout the year generally receive higher WIS payouts, while those with lower or irregular income may receive smaller amounts. The scheme’s design ensures fairness by linking the payment directly to actual work done and contributions made.
This data-driven calculation model reduces the need for manual verification, ensuring timely disbursement to all eligible employees.
Administrative and Compliance Requirements
Employees are not required to submit any applications or forms to receive WIS. Their eligibility is automatically assessed through CPF contribution records maintained by their employers. The process is straightforward, transparent, and error-resistant.
Self-employed persons, however, must follow specific steps to qualify. They need to declare their income to IRAS and make MediSave contributions by the set deadline, usually 31 March of the following year. If they fulfil these conditions, their payout is credited by the end of April. Any delays in compliance can lead to postponed payments.
Frequently Asked Questions (FAQs):
1. What is the purpose of the WIS scheme?
The WIS scheme supplements the income of lower-wage workers while encouraging continued employment and CPF contributions for long-term savings.
2. What is the maximum WIS payout for employees in 2025?
From 2025, eligible employees aged 60 and above can receive up to SGD 4,900 per year, depending on their income and duration of work.
3. Do employees need to apply for WIS payments?
No. The scheme operates automatically through CPF contribution data, so no separate application is required.
4. How are payments made to employees?
Payments are made monthly, approximately two months after the work month, through PayNow, bank transfer, or GovCash. The CPF portion is credited directly into the employee’s CPF accounts.
5. Can part-time workers qualify for WIS?
Yes, part-time employees are eligible as long as their income and CPF contributions meet the scheme’s qualifying criteria.