The Singapore Government has proactively supported vulnerable groups of employees over the year.
One of the clearest examples has been the Progressive Wage Model – that implemented a type of minimum wage, while tying in employment progression as well. Sectors under the PWM include, the cleaning, security, landscaping, waste management, and has even gone on to protection job scopes such as drivers.
In 2025, several groups of employees in Singapore can look forward to greater employment protections.
Read Also: Progressive Wage Model: How Much Will Singapore Employers Have To Pay Their Workers
#1 Commencement Of Platform Workers Act
There has been a growing number of people becoming Platform Workers in Singapore, with majority of them working as Taxi Drivers, Private-Hire Car (PHC) Drivers and Delivery Workers. As of 2024, there were 67,600 Platform Workers in Singapore.
The commencement of the Platform Workers Act from January 2025 will provide Platform Workers greater employment protection going forward.
Under the Act, younger Platform Workers will start receiving mandatory CPF contributions, and older ones can opt-in.
While the spotlight has been on CPF contributions, the Act will also mandate WICA-like protection and Union-like representation for Platform Workers as a group.
Read Also: Platform Workers To Get CPF; WICA-Like Protection; And Union-Like Representation From 1 Jan 2025
#2 Higher CPF Contributions For Older Employees
As a rapidly ageing country, workers in Singapore are also getting older. As of 2024, 32.5% of those aged 65 and over remain in the workforce, compared to only 25.2% in 2014.
As this group of employees is set to continue growing, it is no surprise that the Government has put more attention to them. For example, there is already a broad move to increase the Retirement Age to 65 and the Re-employment age to 70 by around 2030.
From 2025, senior workers aged above 55 to 65 will also see 1.5% higher CPF contributions. While they will contribute 1% of this increase, their employers will have to contribute 0.5% – and the full increase will go to their Retirement Account.
This means that while they will have a slightly lower take-home pay, due to their higher employee CPF contributions, they will also get a higher overall pay package, with the higher employer CPF contributions.
Read Also: Senior Worker CPF Contribution Rates And CPF Transition Offset Scheme: What Businesses Need To Know
#3 Passing Of Workplace Fairness Bill
As a country with a small population, that is also multicultural and rapidly ageing, it is important that workplace discrimination is stamped out.
Over the years, many initiatives have gone towards this effort, and the latest is the passing of the Workplace Fairness Bill in Parliament on 8 January 2025.
The Bill ensures that employees are protected from workplace discrimination in 5 areas:
1) age;
2) nationality;
3) sex, marital status, pregnancy status, and caregiving responsibilities;
4) race, religion, and language; and
5) disability and mental health conditions.
These account for more than 95% of discrimination complaints received by the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) and the Ministry of Manpower (MOM).
The Bill provides protections such as:
– Strengthening protections for jobseekers and employees against discrimination, while retaining flexibility for employers to meet genuine business needs;
– Promoting better communication and amicable resolution of workplace issues through requiring firms to have grievance handling processes; and
– Complementing MOM’s education-first approach with calibrated enforcement levers to deal with egregiously unfair employment practices.
#4 Flexible Work Arrangements (From December 2024)
This one was implemented from December 2024, but is close enough to the new year?
From 1 December 2024, employers had to formally consider flexible work request from their employees. While it does not mean that employers have to agree to all Flexible Work Arrangement (FWA) requests, it has to reject or grant them based on valid business-related decisions.
Of course, all employees can make such request. But, arguably, this will enable those with caregiving needs more support in continuing work, rather than exiting the workplace. It will also encourage those who cannot work full-time, due to care-giving or health-related conditions, to participate in the workforce rather than sit out.
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
