Understanding Workfare Income Supplement (WIS) And Workfare Skills Support (WSS) For Employers And Self-Employed Individuals

Understanding Workfare

Raising the wages of lower income Singaporeans was a main focus in Prime Minister Lee Hsien Loong’s National Day Rally (NDR) 2021. In his speech, he singled out the Workfare Income Supplement (WIS) as an important scheme to help low income earners. Enhancing the scheme, PM Lee also reduced the qualifying age for WIS to 30, from 35 years old.

Another, perhaps lesser known, part of Workfare is the Workfare Skills Support (WSS) scheme. This scheme encourages local workers and employers to look at relevant training for employees.

Read Also: Progressive Wage Model: How Much Will Singapore Employers Have To Pay Their Workers

What Is Workfare?

Acting as part of the social security system in Singapore, Workfare currently comprises two schemes, the Workfare Income Supplement (WIS) and Workfare Skills Support (WSS). Introduced in 2007, the aim of Workfare is to uplift the wage of lower income earners in Singapore, while keeping employment rate high.

The Workfare Income Supplement (WIS) scheme is “effectively a negative income tax”, supporting older and lower wage Singaporean workers. Instead of taxing a low-wage employee’s income, the government tops up their salaries in cash and CPF payouts. 

The Workfare Skills Support (WSS) encourages Singaporean workers to go for training to improve their skillset. It also supports employers that send their workers for training.

How Much Does The Workfare Income Supplement (WIS) Provide?

The amount of Workfare Income Supplement (WIS) you will be paid depends on your age and employment status.

Age in the work yearFor employeesFor self-employed persons
35 to 44$1,700$1,133
45 to 54$2,500$1,667
55 to 59$3,300$2,200
60 and above$4,000$2,667

* No information has been provided for those who are 30 to 35. Persons with disabilities and below 35 years old should refer to the 35 to 44 age group. Note that these numbers are the maximum WIS payouts, rather than fixed.

Self-employed persons receive roughly two-thirds of the amount provided to employees because “CPF contribution made by self-employed persons (SEPs) is comparatively lesser than employees who earn the same amount”.

Employees will receive 40% of their WIS payouts in cash and 60% in CPF top-ups. Those who are self-employed will receive 10% in cash and 90% in CPF MediSave top-ups. You can also use the WIS Calculator to find out how much you will get.

Employees will receive WIS payouts for every month that they work. These payouts will be paid out after two months. For example, if you worked in January, your January WIS payout will be paid in end-March.

For self-employed persons, you will receive one WIS payout a year, for work done in the previous year. The earliest payment will be end April the following year.

For both employees and self-employed, there’s not need to apply for WIS, as it will be automatically calculated based on CPF contributions. For employers, this is why it is important that you pay your employees’ CPF contributions on a timely basis. All employees who earn more than $50 are eligible for CPF contributions.

WIS payouts are also paid entirely by the government, and employers do not share in the payouts. This helps employers continue to pay employees a fair wage, while the government supplements it if it is deemed too low. As WIS is only eligible for those who are working, it helps employers hire and retain local employees, as they are incentivised to work.

Read Also: Complete Guide To Employer’s CPF Contributions In Singapore

How Much Workfare Special Payment (WSP) Will You Get?

In 2020, all Singaporean employees and self-employed persons who received WIS payouts was paid a Workfare Special Payment (WSP). This is not a permanent scheme – and this scheme was not extended in 2021.

In 2020, eligible workers and self-employed persons received a cash payout of $3,000, paid over two equal payments in July and October 2020.

What Is The Workfare Skills Support (WSS) Scheme?

Employees and self-employed persons who sign up and pay for WSS qualifying courses on their own will be eligible for $6.00 of Training Allowance (TA) per hour, for up to 180 hours per year. This can potentially pay up to $1,080 per year. In addition, individuals who undergo sustained training will be eligible for a Training Commitment Award of up to $1,000 per year.

You will receive $100 for undergoing training in any two of the following (capped at $200) per four achievements:

  • WSQ Statement of Attainment (SOA)
  • Academic CET Modular Certificate/Post-Diploma Certificate
  • Other certifiable course supported by SkillsFuture Singapore

You can also receive $500 for one WSQ qualification or academic CET Qualification.

Employers who send their employees for training can receive Absentee Payroll of up to 95% of their employees’ basic hourly salary (with no dollar cap). Eligible courses include:

Read Also: SkillsFuture Enterprise Credit (SFEC): A One-Off $10,000 Grant For Companies To Transform Their Business And Upskill Employees

Who Is Eligible For The Two Workfare Schemes?

Singaporeans who are 30 and above and earn a gross monthly income of not more than $2,300 a monthwill qualify for Workfare Income Supplement payouts. The salary ceiling of $2,300 includes basic salary and extra wages such as Overtime Pay, as well as acts as a ceiling for their average gross monthly income in the past 12 months.

Read Also: How To Calculate Overtime Pay For Your Employees During The Month

However, there are some exclusion clauses, especially for wealthier workers. Anyone who lives in a property with an Annual Value of more than $13,000 as at 31 December in the previous year will not be eligible. Similarly, anyone who owns more than one property is excluded from the scheme. For workers who are married, you and your spouse cannot own more than one property and the assessable income of your spouse cannot exceed  $70,000 in the previous year.

Eligibility Criteria
NationalitySingaporean
Age30 and above (this was reduced from 35 during PM Lee’s National Day Rally 2021)
– All persons with disabilities are covered regardless of age
Gross Monthly IncomeNot more than $2,300
– Including basic wage and any extra wages
– Average gross monthly income in past 12 months is also not more than $2,300
– If married, your spouse’s annual assessable income in the previous year cannot exceed $70,000
Property you live inCannot live in a property with Annual Value of more than $13,000
Property ownershipCannot own more than one property
– If married, you and your spouse cannot own more than one property

For those who are self-employed, you also need to have declared your net trade income for the year and have made your MediSave Contributions.

Read Also: How Much Self-Employed Persons Need To Contribute To MediSave (And What Happens If You Don’t)

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