MORE than 8,000 platform workers born before 1995 – as of December 2024 – have voluntarily opted in for increased Central Provident Fund (CPF) contributions, said the Ministry of Manpower (MOM) on Tuesday (Dec 17).
The ministry said that it has been working closely with NTUC to encourage such workers to opt in early so they have more time to accumulate interest and boost their CPF savings. That can then be used for their housing and retirement needs.
“Younger Platform Workers have a greater need for CPF contributions because of housing needs and can benefit more from the compounding interest given their longer runway for accumulation,” said the ministry in a statement.
Since Nov 1, 2024, this group of platform workers born prior to 1995 have had the option of voluntarily opting in to the increased CPF contributions via the CPF website, although this scheme is mandatory for younger platform workers born on or after Jan 1, 1995. From Jan 1, CPF contributions will be deducted for platform workers born before Jan 1, 1995, who have opted in for increased CPF contributions.
As of Jan 1, CPF contributions will be drawn from the wages of platform workers who are voluntarily and mandatorily part of the scheme.
By 2029, the percentage of CPF contributions will be raised gradually to their prevailing rates of 20 per cent of platform workers’ wages and 17 per cent, paid by platform operators.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The percentage of CPF contributions drawn from platform workers’ wages will start at 12.1 per cent in 2025 and gradually increase to 20 per cent and likewise, the percentage of contributions from platform operators will start at 3.5 per cent in 2025, increasing by an additional 3.5 per cent each year until it hits 17 per cent.
This is one of the measures introduced under the Platform Workers Bill. It was tabled in parliament earlier in August to increase platform workers’ protections.
Besides granting them CPF contributions, other measures introduced under the bill include providing them with workplace injury compensation insurance and a legal framework for representation.
CPF contributions for platform workers could amount to a cost increase of around US$368 million (S$494.3 million) over the next five years, a report by consultancy Momentum Works indicated.
That excludes other costs like workplace injury compensation insurance, which is estimated to reach US$32 million per year.
