Singapore’s government will fund up to 75% of the increase in Central Provident Fund (CPF) (compulsory savings and pension plan) contributions for lower-income platform workers in the first few years, reports Channel News Asia, citing Senior Minister of State for Manpower Koh Poh Koon. Starting from the second half of 2024, platform workers and platform companies’ CPF contribution rates will progressively rise over five years, at about 2.5% per year for workers and 3.5% per year for companies.

Platform workers earning up to SGD 2,500 per month and who increase their CPF contributions will be eligible for the transition support.In the first year, the government will pay 75% of the additional contributions. This will be reduced to 50% of the increase in the second and third years, and 25% in the fourth year, which is the last year of this transition support. Koon said the support will help ease concerns that platform workers have about the impact of the CPF changes on their take-home pay.

Last year, the government announced that platform workers would receive the same levels of work injury insurance and contributions as employees to the national CPF savings scheme after the government accepted all 12 recommendations from the Advisory Committee on Platform Workers. Platform workers will continue to be treated as self-employed persons (SEPs). Singapore has about 73,000 platform workers, with more than 16,000 delivery riders and the remaining private-hire and taxi drivers.