Budget 2023: More support to lower-income platform workers when CPF contributions kick in from 2024
Renald Yeo
TO help platform workers cope with lower take-home pay when the increased Central Provident Fund (CPF) contributions kick in from as early as 2024, the government will provide CPF transition support for the first four years after implementation. (*see amendment note)
This was announced by Finance Minister Lawrence Wong in his Budget speech on Tuesday (Feb 14).
This move comes after the government accepted all 12 recommendations from the Advisory Committee on Platform Workers in November last year.
One recommendation was to align the CPF contribution rates of platform workers and companies with those of employees and employers over a period of five years.
Platform workers who are below 30 years old when the changes are implemented from 2024 will be required to make increased CPF contributions, Wong said. Also, platform companies will also be required to pay CPF contributions for these workers.
“These changes will help platform workers raise their total earnings and strengthen their housing and retirement adequacy,” he said.
Platform workers refers to delivery workers, private-hire car drivers and taxi drivers who use online platforms – such as Grab or Gojek – in their course of work.
More details on the CPF transition support will be announced by the Minister of Manpower at the upcoming Committee of Supply debate, said Wong.
*Amendment note: A previous version of the article did not reflect that platform workers already make CPF MediSave contributions.
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