The advisory committee, which was formed in September 2021 to look into strengthening protections for those who work for online platforms, recommended a phased increase in CPF contributions over five years, unless major economic disruptions require a longer timeline.
The committee previously said it was looking at an average of 2.5 per cent and 3.5 per cent increases in CPF contribution rates annually, for platform workers and platform companies respectively. These CPF contribution rates will apply to workers’ total earnings, less expenses.
“These changes will help platform workers raise their total earnings and strengthen their housing and retirement adequacy,” said Mr Wong. “But in the short term, they will affect the take-home pay of these workers.”
A LONGSTANDING CONCERN
During his National Day Rally address in 2021, Prime Minister Lee Hsien Loong said he was “especially concerned” about delivery workers who work with online platforms like foodpanda, Grab or Deliveroo.
Delivery workers are just like employees “for all intents and purposes”, but have no employment contracts with the online platforms, he noted.
“Therefore they lack the basic job protection that most employees enjoy, like workplace injury compensation, union representation and employer CPF,” Mr Lee said.