MOM also issues reminder to operators ahead of Platform Workers Act implementation next year
More than 8,000 platform workers have opted into increased Central Provident Fund (CPF) contributions since the option became available on November 1, the Ministry of Manpower (MOM) reported on Tuesday.
Platform workers born before January 1, 1995, are now able to voluntarily contribute more to their CPF accounts. The increase aims to help workers save for housing and retirement, with the added benefit of compounding interest over a longer period.
"MOM has been working closely with the National Trades Union Congress to encourage Platform Workers to opt in early for a longer runway to benefit from compounding interest and boost their CPF savings, which can be used for housing and retirement needs," MOM said in a statement.
The decision to opt in cannot be reversed, and there is no deadline for platform workers to make the choice, according to the ministry.
For those who opt in, MOM said lower-income workers will receive the enhanced Platform Workers CPF Transition Support, which will offset 100% of their share of increased CPF contributions to the Ordinary and Special Accounts in 2025.
Older platform workers who choose not to opt in will continue to be required to make CPF MediSave contributions but will not receive the additional CPF contributions from their platform operators.
Platform operators are responsible for deducting all required CPF contributions from platform workers' earnings and transmitting them to the CPF Board on a monthly basis, regardless of whether workers opt into the increased contributions.
MOM's announcement comes as it reminded employers of the commencement of the Platform Workers Act starting January 2025.
The bill classifies platform workers into a separate labour class and extends protections to the sector such as:
Weeks before its implementation, MOM reminded platform operators to notify them of their status as an operator.
"Companies can use a self-assessment checklist that is available on MOM's website to assess if they are Platform Operators before notifying MOM," the ministry said. "Companies that notified MOM before 1 January 2025 will not need to notify MOM again. A list of Platform Operators will be made available on MOM's website."
