Implementation Date of Platform Worker Protections and Enhancements to Platform Workers CPF Transition Support

Implementation Date of Platform Worker Protections and Enhancements to Platform Workers CPF Transition Support

MEDIA FACTSHEET ON IMPLEMENTATION DATE OF PLATFORM WORKER PROTECTIONS AND ENHANCEMENTS TO PLATFORM WORKERS CPF TRANSITION SUPPORT

Implementation Date of Protections for Platform Workers

• In November 2022, the Government accepted the recommendations by the Advisory Committee on Platform Workers to strengthen protections for Platform Workers in three areas - adequate financial protection in case of work injury, improved housing and retirement adequacy, as well as enhanced representation. The Platform Workers Bill will give effect to the recommendations by the Advisory Committee.

• The Ministry of Manpower has been working closely with Platform Operators, Platform Workers, insurers and the Labour Movement to prepare for the implementation of the protections. We plan to implement the requirements for Platform Operators to provide CPF and work injury compensation to Platform Workers, and to enable enhanced representation for Platform Workers from 1 January 2025. This will be more convenient and intuitive for both Platform Operators and Platform Workers as CPF contribution rates will be increased and tax reliefs will be computed from the start of the calendar year.

Enhancements to Platform Workers CPF Transition Support

• The Platform Workers CPF Transition Support (PCTS) was announced in 2023 to mitigate Platform Workers' concerns about take-home pay with the increase in CPF contributions. Lower-income platform workers who are in the mandatory cohort or who opt in to boost CPF savings, and see an increase in their share of CPF contributions, will receive PCTS. PCTS will provide monthly cash support to offset part of the increase in CPF contributions.

• The PCTS will now be enhanced in two ways:

o Offset 100% of the Platform Worker's share of increase in CPF Ordinary and Special Account contributions in 2025. This is up from the 75% offset earlier announced. This means that the Government is paying fully for Platform Workers' CPF contributions in 2025. Platform Workers will not see a drop in their take-home pay and at the same time, will see more contributions into their CPF in 2025. The offset for 2026 will also be increased to 75%, from the 50% offset earlier announced. The offset will taper down gradually from 2026 and cease in 2029.

o Increase in qualifying monthly income cap to $3,000, so that more lower-income Platform Workers can benefit from the scheme. This is up from the $2,500 qualifying monthly income cap announced earlier. This increase is in tandem with the Workfare Income Supplement Scheme, which will be enhanced from January 2025 to increase the qualifying monthly income cap to $3,000 (from $2,500).

*Only for Singapore citizen Platform Workers who see an increase in their CPF Ordinary and Special Account contributions.

• Illustration of the enhancements, based on an example of a Platform Worker, 32-year-old Mr Tan, who earns $2,000 (after expenses) per month.
o Mr Tan currently contributes $160 to his MediSave each year. Mr Tan's own CPF contributions will increase by $50 per month if he opts in to contribute to CPF, and this will go into his Ordinary Account and Special Account.
o With the enhanced PCTS, i.e. 100% offset of increase in the first year and 75% offset of increase in the second year, the Government will fully offset Mr Tan's increased contributions of $50 by providing monthly cash support of $50 in 2025. Mr Tan will thus not see any change in his take home pay in 2025, and will have more contributions to his CPF at the same time. In 2026, Mr Tan would receive monthly cash support of $38.