Employers want contributions for two key areas of life
Singapore's platform workers raised the issue of Central Provident Fund (CPF) contributions when asked through a survey, according to Senior Minister of State Koh Poh Koon.
The survey is part of the consultations inside the industry by the Advisory Committee on Platform Workers that seeks to strengthen the protections for platform workers, specifically delivery persons, private-hire car drivers, and taxi drivers.
So far, the committee has reached out to more than 20,000 platform workers and received 1,200 submissions from them.
"More than half of these submissions touched on CPF contributions, and of which, 55% indicated support for the idea of mandatory CPF contributions to platform workers," said Koh in a statement.
He revealed that housing was the "most commonly cited reason" for wanting CPF contributions, followed by retirement. According to Koh, such findings were not surprising as platform workers only make CPF contributions for their healthcare needs.
"In the coming months, we will continue with our engagement efforts, and encourage all stakeholders, including platform workers, to share their views," he assured.
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Possible implementation
According to Koh, the committee also recognises that platform companies will be affected if they have to implement mandatory CPF contribution for platform workers.
"While this will increase their business costs, it is no worse off than any other company employing workers in a similar sector, such as in logistics and transport," said Koh.
"Besides, platform companies already contribute CPF for their management executives and administrative staff today," he further noted, adding that it was the same point that platform workers said.
He also echoed the platform riders' question on the consultation, where they questioned why the ones plying the roads were not given the same benefits that employees in the office enjoy.
"Without prejudging the outcome of the Committee's deliberation, if this is implemented, we will develop appropriate mechanisms to ensure compliance," said Koh.
The Advisory Committee on Platform Workers was established to look into three areas of concern for the gig industry. These areas include enhancing housing and retirement adequacy, providing financial protection in the event of work injury, and strengthening representation.
