The Workfare Income Supplement (WIS) scheme plays a significant role in Singapore’s inclusive labour support framework, reaching over 440,000 lower-income workers each year. In 2024 alone, more than $1 billion in Workfare payouts were disbursed to eligible workers, reflecting the government’s strong commitment to helping Singaporeans stay financially secure while encouraging continued employment.
For self-employed persons, who make up about 9% of Singapore’s resident workforce, the WIS scheme provides a unique form of assistance that promotes both immediate income support and long-term healthcare savings. Unlike employees, SEPs do not receive employer CPF contributions; thus, WIS compensates for this gap by rewarding work and mandating MediSave contributions.
From January 2025, the WIS scheme has undergone significant enhancements, including a higher income ceiling of S$3,000, an increased property Annual Value (AV) limit of S$21,000, and boosted maximum payouts across all age bands. These updates ensure that more self-employed Singaporeans, including gig workers, taxi drivers, and small traders, can access meaningful support for both income stability and medical preparedness.
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Understanding the Workfare Income Supplement
The Workfare Income Supplement (WIS) is part of Singapore’s long-term social security strategy under the Central Provident Fund (CPF) system. It provides cash and CPF top-ups to lower-income individuals who continue working, thereby supporting both daily living and retirement adequacy.
While the employee WIS scheme pays monthly benefits, self-employed persons receive annual payouts because their earnings and CPF contributions are declared after the end of each work year. This arrangement accommodates the variable income patterns common among freelancers and business owners.
For SEPs, WIS not only provides financial assistance but also incentivises formal income declaration and MediSave contributions — a critical step toward securing medical coverage under schemes such as MediShield Life and CareShield Life.
Eligibility Criteria for Self-Employed Persons
The eligibility rules are carefully structured to ensure fair and targeted support for lower-income Singaporeans who remain economically active.
- Citizenship and Age: Applicants must be Singapore Citizens aged 30 years or above by 31 December of the work year. However, persons with disabilities (PWDs) qualify at any age.
- Income Range: The individual’s average monthly income must fall between S$500 and S$3,000, calculated from Net Trade Income (NTI) declared to the Inland Revenue Authority of Singapore (IRAS).
- MediSave Contributions: To qualify, self-employed persons must make MediSave contributions based on their NTI. Those with an NTI of S$6,000 or below, who are usually exempt, must still make voluntary MediSave contributions within two years to be eligible for WIS.
- Property and Spousal Criteria: The applicant must live in a property with an Annual Value (AV) not exceeding S$21,000, own no more than one property, and if married, the couple must own only one property jointly. The spouse’s assessable income must also not exceed S$70,000 in the previous assessment year.
These requirements ensure that WIS focuses on assisting genuinely lower-income Singaporeans who actively participate in the CPF system.
Payment Composition and Distribution
Self-employed individuals under the WIS scheme receive benefits in both cash and MediSave contributions, with the latter forming the larger share to encourage savings for future healthcare needs.
| Component | Share of Total WIS | Purpose |
|---|---|---|
| Cash Component | 10% | Provides immediate financial relief and income support. |
| MediSave Contribution | 90% | Strengthens long-term healthcare savings for future medical expenses and insurance premiums. |
The payout is automatically credited once the CPF Board confirms income declaration and MediSave contribution compliance. Payments are made annually, generally by the end of April of the following year, provided all requirements are completed by 31 March. Late MediSave payments result in disbursements within two months after full contribution.
Maximum Payouts for Self-Employed Persons
The WIS payout is age-dependent, rewarding older and long-serving individuals with higher amounts. The 2025 revisions substantially raise payout levels across all categories.
| Age Group (Years) | Maximum WIS (Before 2025) | Maximum WIS (From 2025) |
|---|---|---|
| 30–34 | S$1,400 | S$1,633 |
| 35–44 | S$2,000 | S$2,333 |
| 45–59 | S$2,400 | S$2,800 |
| 60 & above / PWDs | S$2,800 | S$3,267 |
The increased payout amounts and raised income ceilings ensure that more working Singaporeans benefit from the scheme, especially those whose earnings fluctuate around the mid-income range.
2025 Enhancements and Impact
Starting in 2025, significant improvements have been implemented to strengthen support for self-employed persons. The income ceiling has risen from S$2,500 to S$3,000, allowing more lower-middle-income earners to qualify. The property Annual Value (AV) limit has also increased to S$21,000, extending eligibility to more households in higher-value properties.
Moreover, the maximum annual payout for SEPs aged 60 and above has increased to S$3,267, reflecting an emphasis on supporting older workers. These adjustments align with Singapore’s efforts to enhance social mobility and retirement adequacy without discouraging continued work participation.
Process to Receive WIS for Self-Employed Persons
The procedure to receive WIS benefits is straightforward and automated:
- Declare Net Trade Income (NTI): File your NTI with IRAS during the annual tax filing period.
- Contribute to MediSave: Ensure all MediSave contributions are made promptly based on assessed NTI.
- Meet Eligibility Requirements: Check property ownership, spouse’s income, and other qualifying conditions.
- Receive Automatic Payment: The CPF Board disburses payment automatically once requirements are met.
- Track Payout Status: Use CPF e-Services to view crediting details and status updates.
Differences Between Employees and SEPs
Although both employees and SEPs benefit under WIS, the structure differs. Employees receive monthly payouts based on employer-submitted CPF records, while SEPs receive annual payouts based on their declared NTI.
Employees typically receive 40% of WIS in cash and 60% in CPF contributions, but SEPs receive 10% in cash and 90% in MediSave. This ratio helps self-employed workers accumulate sufficient healthcare reserves since they do not receive employer CPF contributions.
Frequently Asked Questions (FAQs)
1. Do I need to submit a separate application for WIS?
No. Once you declare your Net Trade Income (NTI) to IRAS and make MediSave contributions, the CPF Board automatically processes your eligibility.
2. When will I receive my payout?
If all requirements are met by 31 March, the payout is credited by the end of April. If MediSave contributions are delayed, you’ll receive payment within two months of full compliance.
3. Can I qualify if my income exceeds S$3,000?
No. Self-employed persons earning above the S$3,000 monthly average are not eligible for WIS benefits.
4. Will I qualify if I make no MediSave contributions?
No. Making MediSave contributions is mandatory for eligibility, even for those earning under S$6,000 per year.
5. Does WIS affect other government benefits?
No. Receiving WIS does not affect eligibility for other schemes, such as the GST Voucher, Silver Support, or ComCare assistance.