Platform Workers Must Be Allowed to Join Union-like Bodies; Government to Fully Foot Rise in Workers’ CPF Payments in 2025, Gradually Reducing Support Over Time
Singapore’s newly announced labor protections for ride-hailing and on-demand delivery workers, also known as platform workers, will take effect from January 1, 2025. The measures aim to enhance the financial security of workers for on-demand platforms like Grab and foodpanda. Under the new regulations, these service operators must provide platform workers with work injury compensation similar to that of regular employees.
Additionally, operators will be required to contribute to the Central Provident Fund (CPF) savings scheme, with an increase in workers’ required contribution rates. A significant part of the new measures is that platform workers will be given the right to join bodies that have similar powers to unions, ensuring they have a voice in labor matters.
To help ease the transition, the government will fully cover the increase in CPF contributions for platform workers in 2025. In 2026, the government will reduce its support to 75%, and this will gradually taper off, with full responsibility for CPF contributions shifting to platform operators by 2029.
This move is part of a broader effort to ensure that platform workers, who numbered 70,500 in 2023, are better protected and have greater access to benefits that were once only available to full-time employees.
