SINGAPORE — Details of transitional support for some lower-income platform workers who will soon be required to make Central Provident Fund (CPF) contributions were unveiled in Parliament on Wednesday (March 1).
These"gig economy" workers, such as food delivery riders, will receive support from the Government in the form of a 75 per cent offset to the increase in their CPF contributions in the first year that they are phased into the CPF scheme.
The details of the transitional support for platform workers earning S$2,500 or less a month were announced by Senior Minister of State for Manpower Koh Poh Koon on Wednesday. When the move kicks in the second half of 2024, workers will get an initial 75 per cent offset from their increase in CPF contribution, which will be tapered down to 50 per cent between 2025 and 2026, and then down to 25 per cent in 2027.
From the second half of 2024, he has to start making additional S$50 contributions a month, or 2.5 per cent of his monthly salary, to his CPF. This increase will happen year-on-year over the next five years, until his CPF contributions are on par with what full-time employees currently contribute, which is 20 per cent of their income for workers aged 60 or younger.
They will receive 40 per cent in cash, while the rest will go into their CPF, compared to 10 per cent in cash and 90 per cent into CPF currentlyThese Workfare payments for platform workers will kick in in the second half of 2024, where all platform workers eligible for WIS will receive monthly instead of yearly WIS payments.
"In discussion with platform companies, it would be complex and add to compliance cost if platform workers are allowed to opt out after opting in," he said.We strongly recommend that older cohorts of platform workers opt in, as they can similarly benefit from having additional contributions by the platform companies to build up their retirement nest egg.
Other than discrimination on earnings, platform workers have also raised concerns about issues such as working conditions, safety at work and the need for timely dispute resolution with customers.
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