MPs raise concerns on costs of law to protect platform workers

Concerns over who will pay for the increase in costs that will likely arise from a proposal to raise Central Provident Fund (CPF) contributions for ride-hailing drivers and on-demand delivery workers were a major theme during the debate in Parliament over the Platform Workers Bill.

- Kok Yufeng

For four hours on Sept 9, 14 MPs from both sides of the aisle spoke about the impact of the Bill on workers and consumers, touching on issues such as fair wages, workplace safety and a lack of trust in how some of these online platforms operate.

Senior Minister of State for Manpower Koh Poh Koon said the Bill, which proposes to align the CPF contribution rates of platform workers and platform operators with those of employees and employers, will unavoidably lead to an increase in business costs.

"As a society, if we all believe that we should provide some core protections for our platform workers, we should be prepared to pay just a little bit more... In fact, our surveys show that many consumers are indeed prepared to do so," Dr Koh said.

The Bill also seeks to provide platform workers with a standardised work injury compensation regime, which some MPs fear will raise insurance premiums for operators, which will then be passed on to workers and consumers.

Dr Koh said the Government recognises the concerns around the higher costs, and will put in place measures to manage the impact.

For instance, provisions in the CPF Act and Work Injury Compensation Act that prohibit employers from recovering the cost of their share of CPF contributions and work injury compensation will be amended so that they also apply to platform operators.

Dr Koh said he also believes the existing open and competitive market for work injury compensation insurance will facilitate sustainable premiums.