Self-employed individuals in Singapore will soon receive a welcome financial boost, as the government rolls out enhanced support under the Workfare Income Supplement (WIS) scheme in 2025. With annual payouts reaching up to $2,800, this initiative aims to bolster retirement savings and ease daily financial burdens for lower-income workers who often lack traditional employment benefits.
First introduced in 2007, Workfare has been a cornerstone of Singapore’s social support framework, providing cash and MediSave contributions to encourage continued work and long-term financial planning. To date, the scheme has supported over 1 million workers, disbursing more than S$10.5 billion.
Why Workfare Matters for the Self-Employed
Unlike salaried employees, self-employed persons (SEPs) do not receive employer-funded CPF contributions, medical coverage, or other workplace benefits. The WIS scheme helps fill that gap by delivering direct support to those earning modest incomes from their trade, freelance work, or gig economy roles.
In 2025, the enhanced WIS scheme will provide eligible SEPs with:
- Up to $2,800 annually
- 10% in cash, paid directly
- 90% into MediSave, to support medical needs and retirement
This split is designed to offer immediate relief while reinforcing long-term savings.
Who Qualifies for the 2025 SEP Workfare Payout?
To be eligible for the Workfare payout in 2025, SEPs must meet all of the following conditions:
- Age: 30 years or older by 31 December 2024, or of any age if registered with disabilities
- Income: Average monthly net trade income between $500 and $2,500
- MediSave: Must have made full MediSave contributions for the 2024 work year
- Property ownership: Reside in a property with an annual value below $21,000
- Spouse’s income: If married, spouse must not earn more than $70,000 in the previous year
Even those earning below $500/month may qualify under concessionary conditions, especially if they are caregivers or persons with disabilities.
Age-Based Payment Tiers for 2025
The WIS payout increases with age, recognizing the need for greater retirement support among older workers.
| Age Group | Maximum WIS (2025) |
|---|---|
| 30–34 years | $1,400 |
| 35–44 years | $2,000 |
| 45–54 years | $2,400 |
| 55–59 years | $2,800 |
| 60 years & above | $2,800 |
Key Dates & Payment Timeline
Workfare payouts for SEPs are issued once a year, based on the previous year’s income and MediSave contributions. Here’s how the process works:
- Work Year: 2024
- Deadline to declare income: April 18, 2025
- Deadline to pay MediSave: December 31, 2025
- Expected payment: By April 2025, if all requirements are met
What SEPs Must Do to Receive Payment
To ensure full and timely receipt of your 2025 Workfare payout, follow these three critical steps:
1. Declare Your Net Trade Income
Declare your 2024 income to IRAS by the annual tax filing deadline (April 18, 2025). This is the most important step to verify your earnings.
2. Fulfil MediSave Contributions
Based on your declared income, you must contribute the required amount to MediSave. These payments must be completed by December 31, 2025.
3. Update Your Banking Details
Ensure that your PayNow-linked bank account or registered bank details are up to date with the CPF Board. If not, the cash portion will be disbursed via GovCash, which may involve additional steps.
FAQs
Q: When will I receive my 2025 Workfare payout?
A: Payments will be credited by April 2025, provided all income declarations and MediSave contributions are completed.
Q: What happens if I miss my MediSave deadline?
A: You will not receive the payout unless full contributions are made on time.
Q: Is a PayNow account necessary for cash payout?
A: Yes, it is the preferred method. Without it, you will receive your payment through GovCash, which requires in-person collection or digital redemption.
Final Thoughts
For self-employed Singaporeans, the enhanced WIS scheme is more than just a one-time payment it’s a step toward financial resilience. With a maximum payout of $2,800, the 2025 Workfare scheme ensures that even those without formal employment structures can access vital support for healthcare and retirement planning.
Now is the time to take action. File your income, top up your MediSave, and get ready to benefit from one of Singapore’s most impactful social support schemes.