In February 2024, the Singapore government announced a major update to the Workfare Income Supplement (WIS) program, designed to provide financial support to lower-income self-employed persons (SEPs).
As part of the initiative, SEPs will now be eligible for up to $2,800 in Workfare payments, helping them manage healthcare costs and retirement savings.
Here’s everything you need to know about how to claim your cash and MediSave vouchers for 2025.
What is the Workfare Income Supplement (WIS)?
The WIS program, which began in 2007, is a government initiative aimed at improving the financial well-being of lower-income workers, including self-employed persons (SEPs).
As of February 2024, the program has already disbursed over $10.5 billion to over 1 million Singaporeans, providing them with essential support in the form of cash payouts and MediSave contributions.
Unlike salaried employees, SEPs do not automatically receive employer contributions to CPF or MediSave accounts.
This program helps bridge that gap by directly contributing to MediSave accounts and offering cash payouts to support everyday expenses and future healthcare needs.
Eligibility for the $2,800 Workfare Payment
To qualify for the $2,800 Workfare payment, self-employed individuals must meet the following criteria:
| Criteria | Requirement |
|---|---|
| Age Requirement | At least 30 years old as of 31 December 2025 (or any age for persons with disabilities) |
| Income Range | Average monthly net trade income between $500 and $2,500 |
| MediSave Contributions | Must make the necessary MediSave contributions for the relevant work year |
| Property Ownership | Must live in a property with an annual value of $21,000 or less |
| Spouse’s Income | If married, spouse’s income must not exceed $70,000 in the preceding year |
Workfare Payment Breakdown for 2025
The Workfare payments are distributed in two parts:
- Cash Payment: 10% of the total payment is made in cash.
- MediSave Contribution: The remaining 90% is credited directly into the SEP’s MediSave account.
How the Payment Works:
- Cash Payment: This is credited to the SEP’s PayNow-linked bank account or any other registered account with the government. If no bank account is registered, GovCash will be used to distribute the payment.
- MediSave Contribution: This portion is automatically directed to the MediSave account, helping SEPs save for future healthcare needs.
Workfare Payment Breakdown by Age Group
The maximum annual Workfare payment varies based on the SEP’s age:
| Age Group | Maximum Annual Payment (2023) |
|---|---|
| 30-34 years | $1,400 |
| 35-44 years | $2,000 |
| 45-54 years | $2,400 |
| 55-59 years | $2,800 |
| 60 years+ | $2,800 |
How to Claim the Workfare Payment
To claim the Workfare Income Supplement payment, self-employed individuals must follow these essential steps:
- Declare Income:
SEPs must file their net trade income with the Inland Revenue Authority of Singapore (IRAS) by 18 April of each year. - Make MediSave Contributions:
Ensure that MediSave contributions are made for the work year, with contributions for work done in 2024 due by December 2025. - Update Bank Account Details:
Make sure that CPF Board has the correct bank account details to process payments via PayNow or other registered methods.
Payment Schedule
Workfare payments for 2024 will be made by April 2025. Here is a quick overview of the payment timeline:
- Eligibility Determination: Based on declared income and MediSave contributions.
- Payment Distribution: Payments will be issued by April 2025 for work done in 2024.
If there are any delays in declaring income or making MediSave contributions, the payment may be delayed.
The $2,800 Workfare Payment provides significant financial support to self-employed persons in Singapore, ensuring they are not left behind in the journey towards financial independence and retirement savings.
By meeting the eligibility criteria and adhering to the income declaration and MediSave contribution deadlines, SEPs can easily access these valuable funds.
FAQs
Who is eligible for the $2,800 Workfare Payment?
Self-employed persons aged 30 years and above, with a monthly net trade income of $500 to $2,500 and making MediSave contributions, are eligible.
How is the payment disbursed?
The Workfare payment is split into 90% MediSave contributions and 10% cash. The cash portion is credited to the SEP’s PayNow-linked bank account.
When can I expect to receive my Workfare payment?
The Workfare payment for work done in 2024 will be credited by April 2025, provided all eligibility requirements and deadlines are met.