Over 8,000 platform workers opt for increased CPF contributions
MOM says it has been working with NTUC to encourage such workers to opt in early so they have more time to accumulate interest and boost their CPF savings
MORE than 8,000 platform workers born before 1995 have voluntarily opted in for increased Central Provident Fund (CPF) contributions as at December 2024, said the Ministry of Manpower (MOM) on Tuesday (Dec 17).
The ministry said that it has been working closely with the National Trades Union Congress to encourage such workers to opt in early, so they have more time to accumulate interest and boost their CPF savings, which 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, platform workers born prior to 1995 could voluntarily opt in for 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, 2025, 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 20 per cent of platform workers’ wages, and 17 per cent paid by platform operators.
The percentage of CPF contributions drawn from platform workers’ wages will start at 10.5 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.
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This was 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 over the next five years, a report by consultancy Momentum Works indicated.
That excludes other costs such as workplace injury compensation insurance, which is estimated to reach US$32 million a year.
Amendment note: An earlier version of this story said the percentage of CPF contributions drawn from platform workers’ wages will start at 12.1 per cent in 2025. It should be 10.5 per cent.
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