The last few years have seen an exponential increase in the gig economy and this trend will only continue to be driven by people wanting to have flexibility and job autonomy vis-a-vis traditional employment. Within Singapore, there are many workers in the gig economy, a majority of them working for online platforms where they take on roles such as delivery riders, private-hire car drivers and taxi drivers. To date, there are over 73,000 platform workers.
These platforms workers face several issues:
- Job security – as gig work is characterised by short-term contracts, they face insecurities in the long run
- Benefits – Many workers might not be entitled to the traditional types of benefits employees get such as paid time off, health insurance, hospital leave etc.
- Limited advancement opportunities – Traditional employees have career ladders and pathways within organisations but many workers in the gig economy (especially platform workers) do not have access to such career advancement opportunities
Changes in motion
Come 2024, platform workers can expect the various platform organisations that they work for to provide the same scope and level of compensation as per the Work Injury Compensation Act (WICA), meaning that the organisation that the platform worker is based in is responsible for compensation if they get injured.
CPF contributions will soon be mandatory for younger gig workers aged 30 and below. Meanwhile, older workers will be given the choice to opt in.
With CPF, platform workers will at least have to set aside savings that will go towards their future retirement. In addition, CPF’s compounding interest will also help their savings in the CPF account to grow exponentially. The money in the CPF Ordinary Account can also be put towards paying for an HDB – be it for down payment or monthly mortgage payments. Without these mandatory contributions, platform workers might have insufficient savings to tap on for housing.
A Telegram poll by finance publication Dollars and Sense also saw a majority of participants agreeing that mandatory CPF contribution will help platform workers with retirement planning.
With rising inflation and cost of living concerns being top of mind concerns for many Singaporeans, mandatory CPF contributions with its compounding effects will certainly go a long way in helping platform workers squirrel away savings.
Ultimately all these recommendations are steps in the right direction to help platform workers secure better protection in case of work injury, enhance workplace representation and help them be more financially stable in the long run. With the gig economy here to stay, it’s heartening to see various stakeholders band together to protect the livelihood of platform workers.
