Singapore platform workers partnering with companies like Grab or Deliveroo will receive help in boosting their savings for housing and retirement, while their take-home earnings are protected.

Summary

• The Central Provident Fund (CPF) will be extended to cover platform workers, with transition support to cushion the impact on take-home pay.
• Platform workers who align their CPF contributions with regular employees will receive stronger support.
• The transition support applies to lower-income platform workers earning $2,500 or less per month and contributing CPF payments.
• Contributions will be increased evenly over five years, with offset payments of 75%, 50%, and 25% of increased contributions in the first, second, and third years, respectively.
• Older platform workers can choose to opt-in or not, but the decision is irreversible once made.
• Platform companies can make additional CPF contributions to benefit older cohorts of platform workers.
• Platform workers will be eligible for higher payments under the Workfare Income Supplement (WIS) scheme, which will be given monthly instead of yearly.
• All platform workers eligible for WIS will receive payments regardless of whether they make CPF contributions or not.
• The measures aim to address platform workers' concerns about a drop in take-home pay amid changes to CPF contributions that will begin in the second half of 2024.

Who are platform workers

Self-employed delivery workers, private-hire car drivers, and taxi drivers who use online platforms operated by platform companies to match them with demand for their services.

The initiative aims to address platform workers' concerns about a drop in take-home pay amid changes to CPF contributions that will begin in the second half of 2024.

• CPF contribution rates: Will be increased evenly over five years, with offset payments of 75%, 50%, and 25% of increased contributions in the first, second, and third years, respectively.
• Opt-in: Older platform workers can choose to opt-in or not, but the decision is irreversible once made.
• Additional CPF contributions: Platform companies can make additional CPF contributions to benefit older cohorts of platform workers.
• Workfare Income Supplement: Eligible platform workers will receive higher payments under the WIS scheme, which will be given monthly instead of yearly. All platform workers eligible for WIS will receive payments regardless of whether they make CPF contributions or not.
• Cost implications: Each stakeholder, including consumers, needs to play a part in the increased costs.

Example

A median income platform worker who turns 30 in 2024 and earns $2,000 (after expenses) per month can use about $450,000 in CPF savings by age 65 for housing and retirement needs.