Implementation of Differentiated, Age-tiered Payout Ratios under Workfare Income Supplement Scheme

Mr Kenneth Tiong Boon Kiat asked the Minister for Manpower (a) what is the rationale for maintaining the Workfare payout ratio of 60% CPF and 40% cash for workers aged 70 and above, who have significantly shorter expected lifespans than workers aged 60 to 69; and (b) whether the Ministry will consider implementing a differentiated, age-tiered Workfare payout ratio that provides higher cash component for older workers to better support their immediate needs.

The Workfare Income Supplement (WIS) is designed to supplement the incomes of lower-wage workers and build up their Central Provident Fund (CPF) savings for retirement, housing and healthcare. The current 40% cash and 60% CPF payout structure reflects this dual objective in helping lower-wage workers meet their immediate needs, while building up CPF savings for future needs.1

Although the cash to CPF ratio is the same for workers aged 70 and above, the CPF component of WIS effectively supports their near-term needs. The CPF component that goes into their MediSave Account can be used to defray medical expenses. The part that goes into the Retirement Account is converted into retirement payouts. The Ministry of Manpower has recently enhanced WIS payments from 2025 across all age bands, which increases the quantum of cash received. For example, a 70-year-old employee earning $1,700 a month saw their total WIS payment increase from $4,200 to $4,900 per year from 2025. The cash quantum correspondingly increased from $1,680 to $1,960.

To support seniors with greater financial needs, the Government has provided various forms of support to help Singaporeans cope with cost-of-living concerns. For instance, Budget 2026 introduced support measures such as: up to $570 of U-Save rebates in FY2026 for eligible Singaporean Housing and Development Board households, to help with their utilities expenses; $200 to $400 Cost-of-Living Special Payment in cash for eligible Singaporean adults; and $500 Community Development Council Vouchers for all Singaporean households.