Low-wage SEPs and Informal Workers Can Register at Singapore Post Branches to Qualify for Workfare Income Supplements

The Workfare Income Supplement (WIS) scheme was announced by the Government in February 2007 to encourage older low-wage workers to remain employed and improve their retirement adequacy. On 1 July 2007, the CPF contribution rates for older low-wage workers were lowered to increase their take-home pay and make them more employable. To make up for the reduction in CPF savings, the Government will give this group Workfare Income Supplements or WIS. WIS benefits are only given to Singaporeans who meet the qualifying criteria (please see Annex A).

What to Do to Receive WIS

2.   Contributions to CPF will be a prerequisite for receiving WIS benefits. The WIS will be administered through the CPF system to ensure proper verification of work and income.

3.   Employees who are contributing to CPF do not need to do anything. The CPF Board will automatically verify the employment and income of eligible employees from their CPF contribution records, and pay the WIS benefits accordingly.

4.   Self-employed persons or informal workers will need to take the following steps:

      Step 1: Register with the CPF Board 

      a. Register with the CPF Board at any Singapore Post branch or any of the 5 CPF Service Centres. Applicants will need to produce their NRIC and fill in a simple form.

      b. Applicants who have already registered with the CPF Board as self -employed workers need not register again.

      Step 2: Contribute to Medisave

      c. Self-employed persons (SEPs) and informal workers will be required to contribute to Medisave in order to qualify for WIS. It is now even more convenient for SEPs and informal workers to make Medisave contributions. They can now pay their Medisave at any of the 62 Singapore Post branches island wide. Contributions can also be made through the following channels:
         i. NETs/Cashcard at AXS machines;
         ii. Cheque made payable to CPF Board at any of the 5 CPF Board Service Centres; and
         iii. E-payment at www.cpf.gov.sg, using a DBS/UOB/Citibank Internet Banking account.

      Please see Annex B for examples of Medisave contributions and corresponding WIS benefits.

When WIS will be Paid

5.   WIS will be paid out twice a year. For employees, payments will be made in January 2008 and April 2008. For SEPs, the first payment will be made in January 2008 for work done in the first half of 2007. A second payment will be made in May 2008 for work done in the second half of 2007. SEPs who do not receive the first payment in January 2008 will receive the full WIS in May 2008 for work done for the whole of 2007.

Outreach Efforts

6.   The Tripartite Committee on CPF and Work Related Benefits for Low-Wage Workers has launched a publicity campaign to raise awareness on WIS. The campaign primarily aims to encourage low-wage self-employed and informal workers to work regularly and to make CPF contributions to qualify for WIS. Another objective is to educate employers on their duty to contribute CPF for their employees. Outreach efforts will include :
      • Print, radio, bus stop, MRT station advertisements and food centre table-top advertisements;
      • Posters and flyers;
      • Home visits by grassroots leaders; and
      • Dialogues with the industry and unions.

More WIS for Workers above the Age of 55

7.   Prime Minister Lee announced in his National Day Rally speech that to further incentivise workers above 55 years to continue working and build up more CPF savings, they will get up to double the WIS payout given to younger workers. For instance, a worker age 62 earning $1,000 a month who gets $100 a month from WIS will now receive $200. More details will be announced in due course.

Contact Information

8.   Information on the WIS scheme can be found at www.wis.sg. Queries can also be addressed to CPF Board via:
     • Email at wis@cpf.gov.sg
     • Hotline number at 1800 -2222-888
       Mon-Fri: 8am – 5pm, Sat: 8am – 1 pm

The WIS is given conditional on regular work. To qualify for WIS in 2008 for work done in 2007, beneficiaries must:

a.       Be a Singapore Citizen;

b.       Be above 35 years of age as at 1 January 2008;

c.       Have worked at least:

                                                   i.      three months in any six-month period in 2007; or

                                                 ii.      six months in 2007;

d.       Have an average monthly income of not more than $1,500; and

e.       Stay in a property with an Annual Value of not more than $10,000 as at 31 December 2006.

Table 2: Self-Employed Persons: Medisave Contributions for Second (Final) WIS Payment
for work done in 2007