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SINGAPORE - A landmark piece of legislation that will place ride-hailing drivers and freelance delivery workers here in a distinct legal category of their own, and afford them greater labour protections, was put up for debate in Parliament on Sept 9. If passed, the draft law will take effect on Jan 1, 2025. It proposes to paid into the Central Provident Fund (CPF) accounts of platform workers born after Jan 1, 1995, and older workers who opt in. The Bill also proposes a standardised work injury compensation regime for these workers, with the same level of coverage as employees. Additionally, cabbies, private-hire drivers and freelance delivery workers – known collectively as platform workers – will be able to Here are the main features of the Platform Workers Bill. According to the Bill, platform workers are those who provide ride-hailing or delivery services for an online platform, and are subject to the platform’s control. Based on Ministry of Manpower (MOM) data, there were about 70,500 platform workers in Singapore in 2023, making up about 3 per cent of the workforce. Of these, 22,200 were cabbies, 33,600 were private-hire drivers and 14,700 were delivery workers. Platform operators, on the other hand, are defined as ride-hailing and delivery companies that exercise management control over their gig workers. This means the companies use data to automate decisions – for instance by using algorithms to determine the fee that ride-hailing drivers will receive for a trip – and impose rules and restrictions on how their gig workers perform tasks. While MOM was unable to immediately provide a list of companies that will fall under this definition, it has given clues in the past. In 2023, when announcing to develop work injury compensation policies for platform workers, MOM listed 13 platform companies as being part of this network. They are: ride-hailing firms Grab, Gojek, Tada and Ryde; taxi operator ComfortDelGro, which has its own ride-hailing platform Zig; food delivery firms Deliveroo and foodpanda; e-commerce giant Amazon; as well as parcel delivery firms GoGoX, Lalamove, Pickupp, uParcel and AirAsia’s logistics arm Teleport. MOM said companies will be responsible for assessing whether they are a platform operator under the Bill, and those who fall under the definition will be required to notify the ministry. A checklist will be published on MOM’s website to help companies self-assess. Upon notification, the company will be added to a list on MOM’s website that workers can refer to. Companies that cease to be a platform operators must also notify MOM of this change. A platform operator that makes the wrong self-assessment will be required to pay any outstanding CPF contributions or work injury compensation owed. Platform operators may also face penalties for not making CPF contributions or not providing work injury compensation in a timely manner, and for failing to notify MOM that it is a platform operator. MOM said platform work can be precarious as platform workers are subject to risks, such as uncertain earnings, traffic accidents and limited CPF savings for housing and retirement. During the debate on the Platform Workers Bill on Sept 9, Senior Minister of State for Manpower Koh Poh Koon said platform workers have modest incomes that can fluctuate from month to month, adding that their median monthly earnings were around $1,500 to $2,500. Also, while platform workers have more flexibility than regular employees in deciding when to work and who to work for, they do not have the full autonomy that other self-employed people enjoy, due to the management controls that platform operators exert. This is why a new distinct category is needed for them, in between employees and self-employed people. “If platform workers are given the full suite of employment rights, such as sick pay and vacation leave, the nature of the relationship between the platform operators and the platform workers will likely change to resemble an employment relationship... which neither party wants,” Dr Koh told Parliament. On why the Bill only covers the ride-hailing and delivery sectors, Dr Koh said around 93 per cent of platform work is concentrated in these services today. He added that the Bill can be amended to cover other platform services in future reviews. Currently, platform workers are only required to make MediSave contributions of up to 10.5 per cent of their net earnings. If the Bill is passed, the CPF contribution rate for platform workers will go up in 2025 by up to 2.5 per cent and savings will go into the Ordinary, Special and MediSave accounts. This will continue to rise over the next four years so that by 2029, platform workers will contribute at the same rate as employees, which today is 20 per cent for those aged 55 and below. Platform operators will also be required to contribute their share to the CPF savings scheme, starting with 3.5 per cent of net earnings in 2025. This will also go up in steps to reach parity with what employers contribute in 2029. Like employers, the onus will be on platform operators to deduct CPF contributions from a platform worker’s earnings and send them to the CPF Board monthly. Operators will need to reflect these deductions clearly in their workers’ earnings slips, Dr Koh said. He added that the Government will also move to reimburse platform workers for the platform operator’s share of CPF contributions if they take paid maternity or paternity leave. The higher CPF contribution rates will be compulsory for younger platform workers born after Jan 1, 1995, and optional for older workers. If the Bill is passed, these older workers can opt in any time from November via the CPF website, with no deadline. However, a decision to opt in will not be reversible. MOM said this is because platform operators would need to monitor the opt-in status of workers and track the different contribution rates, which is impractical and may lead to significant business costs. To allay concerns about a reduction in take-home earnings, Dr Koh said the Government will provide who earn $3,000 or less a month. Those among this group who qualify for Workfare payments will also get them monthly, instead of annually. From 2029 onwards, platform workers who contribute CPF at the same level as employees will also receive the same level of Workfare payments. Additionally, 40 per cent of the Workfare payments from 2029 will be made in cash, compared with 10 per cent today. As the monthly earnings of platform workers are highly volatile, there will be no monthly cap on the amount of income that attracts CPF contributions. However, MOM said an annual net earnings ceiling of $102,000 will apply. Tax reliefs and deductions for these CPF contributions will also be aligned to the employer-employee model. Under the Platform Workers Bill, it will be mandatory for all platform operators to provide platform workers with work injury compensation insurance with the same level of coverage as employees. This means reimbursement of up to $45,000 in medical expenses, compensation for income loss due to medical leave or hospitalisation, as well as lump-sum compensation of between $76,000 to $225,000 for death, and between $97,000 and $289,000 for permanent incapacity. The compensation amount will be calculated based on how much the platform worker had earned in the 90 days prior to the date of the accident. Under the Bill, platform workers will be eligible for work injury compensation when picking up or delivering a passenger or item. However, they will not be covered while waiting for jobs. They will also be ineligible for compensation if they were unlicensed to operate the vehicle being used or if the injury was directly caused by illegal modification of the vehicle. MOM said the platform operator that the worker was working for at the point of injury will be responsible for providing compensation. Like an employee, the worker can initiate a claim by informing the platform operator of the incident and injury details. The operator will then file a work injury report to MOM. In cases where the platform worker was injured while working for multiple platforms, MOM will try to limit the liability to just one platform operator by prioritising the various work stages, with deliveries taking precedence over pick-ups. For instance, if the platform worker was injured while delivering a package for one platform and picking up another item for another platform, only the first platform would be liable. If there are still multiple operators liable after this prioritisation is done, MOM said the liability will be apportioned according to the worker’s earnings from each platform. A lead insurer will be appointed to process the claims and, in such cases, the compensation amount will be based on the worker’s net earnings from the higher-paying sector. Platform workers who disagree with the assessment of their work injury claim will be able to file an objection with MOM, and the ministry will adjudicate the dispute. Platform workers will be able to check the status of their claim via MOM’s EmPOWER e-service. MOM said the majority of work injury claims will usually be resolved about six months to a year after the incident occurs, and within one to two months of the insurer receiving all relevant medical reports and legal documents. Dr Koh said on Sept 9 that MOM has already worked with seven insurers in Singapore to develop work injury insurance policies for platform workers, providing them with data for more accurate risk assessment. Past MOM press statements indicate that the seven insurers likely include Chubb, Etiqa, Great Eastern, Singlife and Income. Under the Platform Workers Bill, both CPF contributions and work injury compensation will be calculated based on net earnings. A “fixed expense deduction amount” will be applied to streamline the computation process. Dr Koh said the fixed expense deduction amount reflects the expenses of the majority of platform workers, and it takes reference from the Fixed Expense Deduction Ratio developed earlier by the Inland Revenue Authority of Singapore for tax purposes. The deduction amount will be 60 per cent of gross earnings for workers using cars, vans, trucks or lorries; 35 per cent for those using a motorcycle, power-assisted bicycle or personal mobility device; and 20 per cent for those who use a bicycle, take public transport or walk. MOM said it will publish a list of the expenses that can covered by this deduction amount after the Bill is passed.