Singapore’s Workfare Income Supplement (WIS) program has been instrumental in supporting lower-income workers, including those in the gig economy. In 2024, eligible platform workers can receive up to $3,267 annually through this initiative. This article provides an overview of the WIS program, including eligibility criteria, payment details, and the application process.
Understanding the Workfare Income Supplement (WIS)
The WIS program is designed to supplement the income and enhance the retirement savings of lower-wage workers. Recognizing the unique challenges faced by platform workers such as inconsistent income and limited access to traditional employee benefits the Singapore government has extended WIS benefits to include this segment of the workforce.
Eligibility Criteria
To qualify for the WIS in 2024, platform workers must meet the following conditions:
- Citizenship: Must be a Singapore citizen.
- Age: Must be at least 30 years old by December 31, 2024. Persons with disabilities are exempt from this age requirement.
- Work Duration: Must have engaged in platform work for at least two months in 2024.
- Income: Annual assessable income should not exceed $70,000.
- Property Ownership: Individuals owning more than one property or whose properties have a total annual value exceeding $13,000 (as assessed on December 31, 2024) are excluded.
- MediSave Contributions: Platform workers must contribute to their MediSave account based on their Net Trade Income (NTI) and age to qualify for WIS payouts.
Payment Details
Starting in 2025, WIS payments for platform workers will be disbursed monthly, providing more consistent financial support. The distribution of the WIS amount is structured to balance immediate financial needs with long-term healthcare savings:
- Cash Component (10%): Credited directly to the worker’s PayNow NRIC-linked bank account. If unavailable, it will be deposited into the registered bank account or via GovCash.
- MediSave Component (90%): Deposited into the worker’s MediSave account to assist with future healthcare expenses.
For instance, for work completed in January 2025, the corresponding WIS payment will be made by the end of March 2025.
How to Apply
Platform workers are not required to submit a separate application for the WIS. The Central Provident Fund (CPF) Board will automatically assess eligibility based on income information provided by platform operators.
It’s essential for platform workers to ensure that their platform operators are accurately reporting their income and making the necessary CPF contributions. If CPF contributions are not being deducted, workers should address the issue with their platform operator or report it to the CPF Board.
Conclusion
The enhanced Workfare Income Supplement program represents a significant step toward improving financial stability and social security for platform workers in Singapore. By understanding the eligibility criteria, and payment structure, and ensuring compliance with CPF contributions, platform workers can effectively benefit from this initiative.