Committee of Supply 2023 debate, Day 4: Koh Poh Koon on CPF contributions for platform workers

Additional CPF contributions for platform workers will be phased in evenly over five years, at around 2.5 percentage points a year for workers and 3.5 percentage points a year for companies. This will help to address concerns and smoothen the transition, said Senior Minister of State for Manpower Koh Poh Koon in Parliament on Wednesday (Mar 1). Noting that some gig workers are concerned about the impact on their take-home pay, he said the Government will provide transition support targeted at lower-income workers earning up to S$2,500 a month who see an increase in their CPF contribution rates. Platform workers who align their CPF contributions to employees earlier will also receive stronger support. In the first year, the Government will offset 75 per cent of the workers’ additional contribution to the Ordinary and Special Accounts. The offset will taper down gradually over the next three years of the CPF contribution rate phase-in period. Once the CPF contribution rates of platform workers have been fully aligned with those of employees, Workfare payments for them will be permanently increased to match those of employees. This means eligible platform workers could get up to S$4,200 a year, up from S$2,800 today, with 40 per cent given in cash compared to 10 per cent today. From the second half of next year, all platform workers eligible for the Workfare Income Supplement will also start to receive monthly instead of yearly payments. All these measures, said Dr Koh, will mitigate concerns about take-home pay while ensuring that platform workers get a significant boost in retirement savings. In his speech, Dr Koh also gave updates on ensuring employment opportunities and retirement adequacy for older workers.