The support will help ease concerns that platform workers have about the impact of the CPF changes on their take-home pay, Dr Koh said during the Ministry of Manpower’s Committee of Supply debate.
Singapore has about 73,000 platform workers, with more than 16,000 delivery riders and the remaining private-hire and taxi drivers.
Last November, the Government accepted a series of recommendations by the Advisory Committee on Platform Workers, one of which was to align the CPF contribution rates of platform workers and companies with those of employees and employers.
Platform workers who are below the age of 30 at the start of implementation will have to contribute to their CPF Ordinary and Special Accounts from late 2024. Platform workers from older cohorts can opt in.
Dr Koh said the Manpower Ministry strongly recommends that older platform workers opt in to receive additional contributions from platform companies.
“Like employees, platform workers who earn between S$50 and S$500 a month will also be able to receive CPF contributions from the platform companies without having to make CPF contributions on their own,” he said.
Platform workers aged 65 and older will receive more in their overall pay package because of the companies’ contributions without having to increase their own CPF contribution rates, which are lower for that age group.
RISE IN WORKFARE PAYMENTS
Once the CPF contribution rates of platform workers have been fully aligned with that of employees, Workfare payments for these workers will also be permanently increased to match those of employees.
Introduced in 2007, the Workfare Income Supplement provides lower-income Singaporeans with cash payouts and CPF top-ups to encourage them to keep working and saving for retirement.
Currently, platform workers who earn between S$500 and S$2,500 a month receive their Workfare payments annually and are paid two-thirds of what an employee of the same age and income level would be paid.
Platform workers also receive 90 per cent of the Workfare payouts in their CPF accounts and 10 per cent in cash.