Platform workers' higher CPF payments 100% covered in Year 1
Younger platform workers who will need to pay more CPF contributions, and others who opt in to do so, will have these contributions fully paid for in the first year.
This is among enhancements to the Platform Workers CPF Transition Support (PCTS) scheme announced on Aug 22 aimed at easing workers’ concerns about their take-home pay.
The scheme, as well as stronger protections for platform workers, will kick in from Jan 1, 2025.
Some of these moves had been slated to start from the second half of 2024, but the Ministry of Manpower (MOM) said the new, single start date for all the measures is more convenient and intuitive for both platform workers and operators.
Under the enhancements to PCTS, the first tranche of support by the Government – now set for 2025 – will cover 100 per cent of the increase in CPF contributions borne by platform workers aged 30 and below as at 2024, and older platform workers who opt in. This is up from 75 per cent.
The second tranche, for 2026, will be raised from 50 per cent to 75 per cent.
The third tranche, for 2027, will remain at 50 per cent, and the fourth and final tranche in 2028, at 25 per cent.
The tranches had been shifted to start from 2025, in line with the change in timelines to align with the start of the calendar year, rather than mid-year.
The PCTS is meant to cushion the decline in take-home pay that platform workers who need to pay more Central Provident Fund contributions would otherwise face.
The support tapers off in tandem with stepped increases to Ordinary Account and Special Account contribution rates these workers bear, towards the same rate that employees currently bear.
The qualifying monthly income cap for the PCTS will also increase, from $2,500 to $3,000.
MOM said the 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.
The other key changes set to start from Jan 1, 2025, are requirements for platform operators to provide CPF contributions and work injury compensation to platform workers, and enhanced representation for platform workers.
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