In a major policy move to improve income security for vulnerable segments of the workforce, the Singapore Government has announced a $1,000 cash payout initiative for informal and low-wage workers in 2025. This measure is part of an ongoing national effort to strengthen social safety nets, reward work participation, and provide meaningful support to those who often fall outside formal employer-employee structures.
The plan is expected to benefit tens of thousands of self-employed workers, perform gig or part-time jobs, or earn low wages without consistent CPF contributions.
Overview
| Scheme Name | Support Scheme for Informal and Low-Wage Workers (2025) |
|---|---|
| Total Benefit | Up to $1,000 in cash payouts |
| Target Group | Informal sector workers, self-employed persons, and low-income earners |
| Disbursement Timeline | Mid to late 2025 (exact months to be announced) |
| Administered By | Ministry of Manpower (MOM), CPF Board, Inland Revenue Authority of Singapore (IRAS) |
Objectives of the $1,000 Cash Plan
- Bridge income gaps for workers not covered under traditional employer payroll structures
- Encourage workforce participation among lower-income and informal sector workers
- Recognize contributions of essential workers and gig economy participants
- Provide short-term financial relief amid rising living costs and inflation
Who Is Eligible?
The payout is not universal and will be given to individuals who meet specific income and employment-related conditions:
| Eligibility Criteria | Details |
|---|---|
| Citizenship | Must be a Singapore Citizen |
| Age Requirement | Aged 21 and above in 2025 |
| Employment Type | Informal sector workers, self-employed persons (SEPs), or part-time workers |
| Annual Net Trade Income or Wages | Typically below $22,000–$34,000 depending on employment status |
| CPF Contributions | Irregular or low contributions allowed; scheme includes CPF-ineligible work |
| Property Ownership | Must own no more than one property |
| Work Participation | Must have worked or declared income in at least 6 months of 2024 or 2025 |
🔎 Informal workers include hawkers, freelancers, delivery riders, domestic helpers, stall assistants, and part-time cleaners.
Breakdown of the $1,000 Cash Plan
| Component | Amount | Description |
|---|---|---|
| Baseline Support Grant | $500 | One-time cash payout for meeting income and work criteria |
| Additional Employment Bonus | Up to $300 | For continued work participation or income growth in 2025 |
| Supplementary Relief Payment | $200 | For those with dependents or disabilities |
| Maximum Total Payout | $1,000 | Credited in stages via PayNow NRIC or GovCash |
Disbursement Timeline
The Ministry of Manpower will begin disbursing the payouts in mid to late 2025, with notifications sent to eligible recipients.
| Payout Component | Estimated Date | Disbursement Method |
|---|---|---|
| Baseline Cash Payout | July–August 2025 | PayNow NRIC / GovCash |
| Additional Work Bonus (if eligible) | October–December 2025 | Based on work declared in 2025 |
| Supplementary Relief Payment | December 2025 | Auto-included for eligible recipients |
âś… Eligible individuals will receive notifications via Singpass, SMS, or letters once they are assessed and approved.
How to Apply or Verify Eligibility
- Self-Employed Persons (SEPs): Must file Income Declaration via IRAS or CPF Self-Employed Portal
- Informal Workers: Encouraged to register and update income via Workfare eServices
- Check status via MyCPF or Workfare Portal
📢 No formal application may be required if income records are available from previous Workfare, ComCare, or IRAS declarations.
Impact and Policy Significance
This initiative is a step forward in recognizing the non-traditional labour force, especially as the gig economy and informal employment continue to expand. It:
- Reinforces social inclusion of workers typically excluded from structured benefits
- Supplements short-term income for essential but low-wage service providers
- Bridges policy gaps for people with fluctuating work schedules and irregular CPF contributions
- Promotes financial independence without disincentivizing continued work
Frequently Asked Questions (FAQs)
Q1: I am a part-time cleaner in my 60s. Am I eligible?
A: Yes, if your income is below the threshold and you’ve worked at least 6 months in the qualifying period.
Q2: Do I need to contribute to CPF to receive this payout?
A: No. CPF is not required, though some components may favour those with prior CPF-linked declarations.
Q3: What if I haven’t filed taxes before?
A: You should declare your self-employed or informal income to IRAS or CPF Board as soon as possible.
Q4: Can I get this and Workfare at the same time?
A: Yes. The $1,000 plan does not affect your Workfare eligibility.
Q5: Will this be a one-time support or ongoing?
A: For now, it is a one-time plan for 2025, but future continuity will depend on government review.
Conclusion
Singapore’s new $1,000 cash plan for informal and low-wage workers in 2025 represents a strategic and inclusive approach to social support. By addressing gaps left by traditional employment systems, this initiative offers meaningful relief and dignity to workers whose contributions are often overlooked.
If you or someone you know works outside the formal job market, it’s essential to ensure your income is properly declared and stay informed about CPF or MOM updates to avoid missing out on this important support.