AS of December 2024, more than 8,000 platform workers born before 1995 have voluntarily opted in for increased Central Provident Fund (CPF) contributions, said the Ministry of Manpower (MOM) in an update on Tuesday (Dec 17).
From Jan 1, CPF contributions will be deducted for platform workers born before Jan 1, 1995, who have opted in for increased CPF contributions.
Since Nov 1, 2024, this group of platform workers born prior to 1995 have had the option of voluntarily opting in to the increased CPF contributions via the CPF website, although this scheme is mandatory for younger platform workers born on or after Jan 1, 1995.
The rationale for this is that this group has greater need for CPF contributions for housing needs, and they would benefit more from the compounding interest given their longer runway for accumulation.
As of Jan 1, CPF contributions will be drawn from the wages of platform workers who are voluntarily and mandatorily part of the scheme.
By 2029, the percentage of CPF contributions will be raised gradually to their prevailing rates of 20 per cent of platform workers’ wages and 17 per cent paid by platform operators.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The percentage of CPF contributions drawn from platform workers’ wages will start at 12.1 per cent in 2025 and gradually increase to 20 per cent and likewise, the percentage of contributions from platform operators will start at 3.5 per cent in 2025, increasing by an additional 3.5 per cent each year until it hits 17 per cent.
This is one of the measures introduced under the Platform Workers Bill. It was tabled in parliament earlier in August to increase platform workers’ protections.
Besides granting them CPF contributions, other measures introduced under the bill include providing them with workplace injury compensation insurance and a legal framework for representation.
CPF contributions for platform workers could amount to a cost increase of around US$368 million (S$494.3 million) over the next five years, a report by consultancy Momentum Works indicated.
This excludes other costs like workplace injury compensation insurance, which is estimated to reach US$32 million per year.
