Singapore has introduced a substantial revision to the Workfare Income Supplement (WIS) scheme starting in 2025, offering up to S$4,900 annually to eligible lower-income workers. This marks one of the largest enhancements to the scheme since its introduction in 2007. The primary aim of this reform is to support Singaporeans who earn modest incomes despite contributing actively to the economy.
The scheme, which supplements wages and boosts CPF savings, plays a dual role in promoting both immediate financial stability and future retirement readiness. In light of rising living costs and evolving employment patterns, the government has decided to uplift the WIS threshold and benefit levels to make them more aligned with current socio-economic realities.
These upgrades are structured not only to offer financial relief but also to act as long-term motivators, ensuring that continued employment and workforce participation are rewarded. The policy emphasizes inclusion and fairness, reflecting Singapore’s broader vision of sustainable and equitable growth.
Major Enhancements in Support Structure
With the 2025 update, the WIS scheme delivers greater monetary value through a revised disbursement mechanism. Workers will receive their benefits quarterly, comprising both cash and CPF top-ups. This approach allows workers to access funds for daily expenses while simultaneously securing their long-term financial future through retirement savings.
The scheme takes a differentiated approach based on age brackets, ensuring that older workers, who typically face greater employment barriers, receive proportionally higher assistance. This adjustment not only recognizes age-related challenges but also encourages mature workers to stay in the workforce.
| Age Group | Max Annual Payout | Cash Component | CPF Contribution |
|---|---|---|---|
| Below 35 years | S$2,100 | S$840 | S$1,260 |
| 35 to 44 years | S$3,600 | S$1,440 | S$2,160 |
| 45 to 54 years | S$4,400 | S$1,760 | S$2,640 |
| 55 years and above | S$4,900 | S$1,960 | S$2,940 |
The above figures reflect the distribution for employed workers. The proportion of cash to CPF remains approximately 40:60, ensuring a steady income stream while reinforcing the CPF system as the cornerstone of retirement planning in Singapore.
Inclusive Eligibility Adjustments
One of the most impactful changes to the scheme lies in the expansion of its eligibility parameters. The monthly income ceiling has been revised upward to accommodate more part-time, contract-based, and informal economy workers, who often fall below the visibility of traditional income support programs.
The age requirement has also been adjusted to allow younger low-wage earners, starting at age 30, to benefit from the scheme. This reflects the government’s understanding of younger adults’ financial challenges in a high-cost environment where early savings matter significantly for future security.
| Criteria | 2024 WIS Requirement | 2025 WIS Requirement |
|---|---|---|
| Minimum qualifying age (employed) | 35 years | 30 years |
| Monthly income threshold | ≤ S$2,300 | ≤ S$2,800 |
| Minimum working duration annually | 6 months | 6 months (unchanged) |
| SEP (self-employed) income floor | ≥ S$2,400/year | ≥ S$2,400/year |
These adjustments are aligned with national goals to better support part-time and self-employed individuals who contribute significantly to the service and digital economy sectors.
Workforce Retention and Development Support
The WIS scheme is designed not just as a transfer of financial support, but also as a workforce retention and skill-building measure. To qualify for payouts, individuals must meet minimum employment duration standards. This reinforces the idea that sustained employment is essential, even in lower-income brackets.
In parallel, the scheme complements broader workforce strategies, such as the Progressive Wage Model (PWM) and SkillsFuture Credit, by ensuring that workers are not only employed but also improving their skills and long-term earning capacity.
- Encourages long-term employment through work-linked incentives.
- Provides quarterly payouts to reinforce stable income patterns.
- Motivates older workers to remain active in the labor force.
- Strengthens employer-employee trust in sectors with high turnover.
- Complements skills development with direct financial assistance.
These outcomes are not just beneficial at the individual level; they also enhance the overall productivity and dependability of Singapore’s workforce.
Strengthening Retirement Outcomes
Beyond day-to-day support, the WIS scheme’s structure addresses longer-term needs. By diverting a significant portion of the payout to CPF, the government ensures that lower-wage workers build up their savings for housing, healthcare, and eventual retirement.
This structure becomes increasingly vital in the face of an ageing population. Many low-wage earners do not have enough disposable income to save independently. The WIS scheme, by directly contributing to their CPF accounts, reduces future dependency on government-funded retirement aid.
- Accumulates long-term retirement savings.
- Secures healthcare access through MediSave.
- Provides a buffer against income volatility during old age.
- Encourages disciplined financial planning among workers.
- Reduces pressure on future welfare systems.
By combining cash and CPF, the scheme strikes a practical balance between immediate consumption and future security — a vital consideration in Singapore’s social policy framework.
Broader Economic and Social Impact
The revised WIS policy also delivers tangible benefits to the wider economy. Industries such as environmental services, logistics, and eldercare, where wages are modest and job vacancies are frequent, are expected to gain from better workforce stability and lower attrition rates.
Employers benefit indirectly from the WIS scheme as it contributes to employee satisfaction and reduced churn, without imposing direct costs on the business. The government’s intervention here promotes sectoral productivity, helping small and medium enterprises maintain service quality even in competitive labor conditions.
The scheme also plays a role in enhancing Singapore’s social fabric by addressing income inequality in a non-disruptive way. Rather than imposing additional burdens on employers, the WIS model supplements low-income workers through public funds, which is a more sustainable and less inflationary approach.
A Targeted Step Toward Equitable Prosperity
The 2025 Workfare Income Supplement upgrade is a reflection of Singapore’s evolving socio-economic vision. By combining broader eligibility, larger payouts, and retirement-linked incentives, the scheme supports inclusive development while promoting a disciplined, employed, and resilient citizenry.
Rather than merely offering welfare, the WIS reinforces the dignity of work, showing that every job, regardless of income level, holds value in the national economy. As global uncertainties persist, such strategic interventions ensure that Singapore remains economically competitive while safeguarding its vulnerable communities.