Platform Workers To Get CPF; WICA-Like Protection; And Union-Like Representation From 1 Jan 2025

Over the years, the number of Platform Workers in Singapore has grown. Today there are over 67,600 Private-Hire Care (PHC) Drivers, Delivery Workers, as well as Taxi Drivers who are considered Platform Workers.

While the work that they do has become more integral to the daily lives of Singaporeans, Platform Workers are subject to job uncertainties, including traffic accidents, limited CPF savings for housing and retirement, and limited control over their employment circumstances and conditions.

From 1 January 2025, with the commencement of the Platform Workers Act, Platform Workers will enjoy stronger job protection.

Read Also: Private-Hire Car Drivers; Taxi Drivers; Delivery Workers: How Much Did Platform Workers Earn In 2023

Who Is A Platform Worker

While Platform Workers are not considered employees, the relationship of Platform Workers and Platform Operators is distinct from a freelance arrangement.

The new Platform Workers Act creates a new category of workers in Singapore – in addition to employees and self-employed persons (SEPs). In doing so, Singapore will become one of the first countries to recognise Platform Workers as a separate group of workers and enact specific legislation to protect their rights.

Here’s how Platform Workers are defined:

Platform Workers are workers who have an agreement with a Platform Operator to provide ride-hail or delivery services in Singapore to users for the Platform Operator and from this, derive any payment or benefit in kind. They are also subject to the control of Platform Operators, such as what tasks are assigned to them and how much they are paid. Platform Workers will be given an earnings slip that specifies their status as a Platform Worker.

Read Also: Contract of Service VS Contract for Service: What’s The Difference Between These Two “Employment” Relationships?

Who Is A Platform Operator?

From 1 January 2025, Platform Operators must inform the Ministry of Manpower (MOM) if they satisfy the definition of a Platform Operator under the Platform Workers Act. Platform Operators that are unsure can use MOM’s Platform Operator’s Self-Assessment Checklist.

To-date, there are 13 listed Platform Operators:

CPF Contributions For Platform Workers 

CPF contributions for Platform Workers, and for Platform Operators, will gradually match the current rates for employees and employers over a 5-year period. Increments will be by up to 2.5%-points to 3.5%-points per year. 

From 1 January 2025, increased CPF contributions is mandatory for Platform Workers born on or after 1 January 1995. This means such individuals will be 30-years-old and younger from 2025. This is because younger Platform Workers may have a greater need for CPF contributions to take care of their housing needs and will benefit from having a longer runway to accumulate CPF savings.

Older Platform Workers can choose to opt in to the increased CPF contributions if they wish to. This is because they may already have existing plans to finance their housing and retirement needs. Such Platform Workers can opt in for increased CPF contributions. There is no deadline to opt-in, but the decision is irreversible. As of December 2024, more than 8,000 Platform Workers have opted in to increased CPF contributions.

Older Platform Workers who do not opt in will still have to contribute to their MediSave Accounts.

Platform Operators will be responsible for deducting the CPF contributions from their Platform Workers earnings, and contribute them to CPF Board each month. This is for both Platform Workers who have Employer’s and Employee’s CPF contributions (i.e. younger Platform Workers and those who opt-in) and those who only need to make MediSave contributions (i.e. older Platform Workers who have not opted in for increased CPF contributions).

At the same time, there will also be a Platform Workers CPF Transition Support (PCTS) to ease the impact on Platform Workers’ take-home pay – which will drop following their employee contributions to CPF. Eligible lower-income Platform Workers will be supported through an enhanced PCTS to offset 100% of their employee CPF contributions to their Ordinary Account and Special Account in 2025 – and will gradually taper down and cease in 2029.

This means the Government will pay fully for the increase in Platform Workers’ CPF contributions in 2025. The offset for 2026 will be 75%. Lower-income Platform Workers will continue to be supported through the Workfare Income Supplement (WIS) Scheme – on a monthly basis rather than annually starting from 2025. 

Read Also: Complete Guide To CPF Contribution For Platform Workers

Work Injury Compensation Coverage

Platform Workers used to bear the brunt of getting injured on the job. Now, Platform Operators must provide their Platform Workers with Work Injury Compensation (WIC) insurance at the same level of coverage as employees under the Work Injury Compensation Act (WICA).

Going forward, Platform Workers can make a claim under WICA if they were injured while performing pick-up or delivery of passenger or goods. Platform Workers will have the same coverage as employees, comprising 1) reimbursement for medical expenses; 2) income loss compensation for medical leave and hospitalisation leave; and 3) lump-sum compensation for permanent incapacity or death.

The level of compensation will be for:

Income loss compensation during medical or hospitalisation leave, and lump sum compensation for permanent incapacity or death will be based on the Platform Workers’ net earnings from all the Platform Operators that they had worked for, in the platform sector in which the injury was sustained (i.e. ride-hail or delivery), over a lookback period of up to 90 calendar days before the date of accident. 

For Platform Workers whose earnings history is unavailable, income loss compensation will be computed based on a prescribed amount of $27 per day. This references the Local Qualifying Salary (LQS), so that Platform Workers are no worse off than workers on LQS.

The compensation will also cover various scenarios where the Platform Worker is concurrently performing jobs for multiple Platform Operators.

As part of this protection, the Workplace Safety and Health Act (WSAHA) will also be amended to clarify Platform Operators’ and Platform Workers’ duties towards safe platform work.

Read Also: Guide To Work Injury Compensation Act (WICA): What Employers Need To Know

Legal Framework For Union-Like Representation

Trade unions represent employees in negotiations with employers based on a legal framework where they must register as seek mandate to represent their employees. As Platform Workers are not considered employees, there is no legal framework for the representation of Platform Workers.

The Ministry of Manpower (MOM) will set up a legal representation framework for Platform Workers. Under this new legal representation framework, Platform Work Associations (PWAs) will be able to represent Platform Workers in negotiations with Platform Operators – in a similar way to how trade unions represent employees.

A PWA must apply to the Registry of PWAs to be registered, and subsequently represent Platform Workers and negotiate on their behalf.

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