The establishment and operation of a formal recycling system for waste electrical and electronic equipment is an important measure to reduce environmental hazards and improve the recycling of resources, but how to incorporate self-employed maintainers into the system has formed an important research gap. Based on the perspective of extended producer responsibility, we argue that self-employed maintainers are required to assume the corresponding environmental responsibility for the environmental externality caused by informal maintenance activities. Using qualitative structural analysis techniques of system dynamics approach with quantitative simulation analysis techniques, we construct an incentive model for self-employed maintainers’ participation in formal recycling system, based on which we propose four incentive strategies. A simulation analysis is further conducted by using the case of waste mobile phones recycling in Qingdao to verify the effectiveness of our incentive model and strategies.