In a significant step to provide financial security for platform workers, Singapore has unveiled the Enhanced Workfare Income Supplement (WIS) 2025, a plan designed to support low-income workers in the gig economy. This initiative is particularly targeted at platform workers, such as ride-hail drivers and delivery partners, who may struggle to build up their retirement savings. The scheme will roll out in January 2025, offering significant relief to those affected by upcoming changes in Central Provident Fund (CPF) contributions.
What is the Enhanced WIS 2025?
The Enhanced Workfare Income Supplement (WIS) 2025 is a government initiative aimed at helping lower-income platform workers adjust to an increase in CPF contributions. CPF is a mandatory savings scheme for all Singaporeans, which requires workers to set aside a percentage of their income for retirement, healthcare, and housing needs. Starting in 2025, platform workers will see a gradual increase in CPF contributions to align with other employees, and the Enhanced WIS is designed to soften the financial impact of these changes.
Key Features of the Enhanced WIS 2025
- 100% CPF Contribution Offset in 2025:One of the most significant features of the Enhanced WIS is that eligible platform workers will receive cash support to fully offset the increase in their CPF contributions in 2025. This will ensure that there is no reduction in take-home pay, even though the contribution rates to the CPF will be higher than before. The goal of this provision is to prevent workers from feeling the immediate financial strain while they adjust to the new system. For example, a platform worker who previously contributed a lower percentage of their income to CPF will now be required to contribute at a higher rate. The government will cover this increase entirely for the first year.
- Gradual Reduction of Support: After 2025, the government will gradually reduce the support given to platform workers. In 2026, the offset will be reduced to 75%, followed by 50% in 2027, and 25% in 2028. This progressive scaling allows workers to adapt over time while still benefiting from some assistance as their CPF contribution rates rise.
- Income Cap Raised:The scheme has also increased the qualifying income cap. Previously, platform workers with a monthly income of up to S$2,500 were eligible for the WIS. Now, the cap has been raised to S$3,000 per month after expenses, allowing more workers to qualify for the scheme. This change reflects the increasing demand for platform work and the reality that many workers earn more than S$2,500 but still face challenges building long-term savings. By broadening the scope, more platform workers will benefit from this support, which can be vital in ensuring they continue to participate in Singapore’s social security system.
- Eligibility Criteria:To qualify for the Enhanced WIS 2025 scheme, platform workers must meet certain criteria:
- Be a Singapore citizen.Be born in 1995 or later, or have opted into the CPF contribution increase if born before 1995.Have a net monthly income (after deducting fixed expenses) not exceeding S$3,000.Experience an increase in CPF contributions compared to the previous year.
- Automatic Assessment and Payment: A major benefit of this support program is that it is designed to be automatic. Eligible workers will not need to apply for the Enhanced WIS themselves. Instead, their eligibility will be assessed automatically using income data provided by platform operators. The payments will be credited monthly to the worker’s PayNow NRIC-linked bank account or via GovCash if no bank account is registered. This ease of access ensures that workers receive the support without bureaucratic delays.
Additional Support: Workfare Income Supplement (WIS)
Beyond the CPF contribution offsets, the Workfare Income Supplement (WIS) itself will be enhanced starting from March 2025. Platform workers will now receive WIS payments on a monthly basis, rather than the previous annual payment structure. This will improve the timeliness of financial assistance, helping workers manage their cash flow more effectively.
From 2029 onwards, those whose CPF contribution rates align with employees will receive even larger WIS payments. These payments will be split 40% in cash and 60% credited to CPF accounts, making it easier for workers to build their retirement savings over time.
Impact on Platform Workers
Platform workers, who have traditionally been excluded from the same benefits as full-time employees, are often left with limited access to savings, healthcare, and retirement plans. By introducing the Enhanced WIS 2025, the Singapore government aims to ensure that gig workers are not left behind as the economy becomes increasingly digital and flexible. This move is part of a broader effort to protect platform workers and extend benefits that were once reserved for traditional employees.
This initiative is especially important given that many platform workers do not enjoy the same labor protections, such as paid leave or health insurance, as employees in regular full-time positions. The enhanced support structure addresses some of these gaps, providing workers with a safety net as they navigate the challenges of platform-based work.
How to Estimate Your WIS Benefits
To estimate the potential benefits you could receive under the Enhanced WIS 2025 plan, the government has provided a convenient PCTS Calculator, where workers can input their income details and see how much support they can expect.
Conclusion
The Enhanced WIS 2025 represents a significant effort by Singapore’s government to improve the welfare of platform workers and integrate them into the country’s robust social security system. As the gig economy continues to expand, this plan sets an important precedent for how countries can balance the flexibility of platform work with the need for workers to have access to basic financial security and retirement savings.
