Over 8,000 platform workers have opted in for higher CPF contributions

More than 8,000 platform workers have opted in for higher Central Provident Fund (CPF) contributions under the Platform Workers Act, which will take full effect from Jan 1, 2025.

- Kok Yufeng

The Ministry of Manpower (MOM) gave this update on Dec 17—1½ months after cabbies, private-hire drivers and freelance delivery workers born before Jan 1, 1995, could begin opting in for the higher contribution rates via the CPF website from Nov 1.

Under the Platform Workers Act, which was passed by Parliament in September, it will be mandatory for younger platform workers born on or after Jan 1, 1995, to contribute more to their CPF accounts.

Platform companies will be required to contribute their share.

Older platform workers will be able to opt in to boost their CPF savings as well.

Over the next five years, the contribution rates for these platform workers will increase by up to 2.5 percentage points per year, while the rates for platform operators will rise by up to 3.5 percentage points per year.

This will enable them to eventually be aligned with what employees and employers pay today.

The current CPF contribution rates for employees aged 55 and below are 20 per cent of wages for employees and 17 per cent for employers.

MOM said the higher rates are mandatory for younger platform workers as they have a greater need for CPF savings to pay for housing, and they can benefit more from the compounding interest.