Government also announces enhanced CPF transition support for platform workers
The upcoming protections for Singapore's platform workers will take effect January 1, 2025, according to the Ministry of Manpower (MOM).
These protections cover three areas for platform workers, including:
- Adequate financial protection in case of work injury
- Improved housing and retirement adequacy
- Enhanced representation
These protections were first unveiled in November 2022 after the government accepted the recommendations of the Advisory Committee on Platform Workers.
"We plan to implement the requirements for Platform Operators to provide CPF (Central Provident Fund) and work injury compensation to Platform Workers, and to enable enhanced representation for Platform Workers from 1 January 2025," MOM said in a statement last week.
"This will be more convenient and intuitive for both Platform Operators and Platform Workers as CPF contribution rates will be increased and tax reliefs will be computed from the start of the calendar year."
Enhanced CPF Transition Support
Meanwhile, MOM also announced that the government will be fully covering platform workers' share of increase in CPF Ordinary and Special Account contributions in 2025.
This is part of its enhancements to the Platform Workers CPF Transition Support (PCTS), which was announced in 2023 amid platform workers' concerns on take-home pay with the increase in CPF contributions.
Under the enhanced PCTS, lower-income platform workers who are in the mandatory cohort or choose to boost CPF savings, as well as see an increase in CPF contributions, will receive monthly cash support to offset the increase in CPF contributions.
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The government will be shouldering 100% of the increase in 2025, up from the 75% offset initially announced.
"Platform Workers will not see a drop in their take-home pay and at the same time, will see more contributions into their CPF in 2025," MOM said.
The offset will be up to 75% in 2026, and then up to 50% in 2027, and then 25% in 2028.
Source: Ministry of Manpower
The qualifying monthly income cap will also be increased to $3,000 to accommodate more platform workers, according to MOM.
"This increase is in tandem with the Workfare Income Supplement Scheme, which will be enhanced from January 2025 to increase the qualifying monthly income cap to $3,000 (from $2,500)," it said.