Should CPF contributions be made mandatory for delivery platform workers?

The government has been reviewing how to protect gig delivery workers to meet their housing and retirement needs. Senior Minister of State for Manpower Koh Poh Koon said that more than 50 percent of the 1200 submissions from platform workers to a government advisory committee voiced concerns about CPF contributions, whereas 55 percent expressed support for compulsory CPF contributions.

Currently, CPF contributions are mandatory for full-time employees but not for the self-employed. Delivery workers fall under the self-employed category. Singapore is studying whether CPF should also become mandatory for these workers and the platforms should also contribute as well.

Dr. Koh said, “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. Besides, platform companies already contribute CPF for their management executives and administrative staff today – a point which many of these riders whom I engage with make as well.”

Are delivery gig workers being paid fairly and adequately?
However, a point to note is that perhaps the underlying problem should not be over whether delivery gig workers should be considered independent contractors or employees and whether CPF contributions should be made mandatory but more about whether these gig workers are being paid fairly and adequately in the first place, according to Business Times. Platform workers are primarily worried that the CPF deductions will eat into their take-home pay.

While delivery platforms cited how their riders make median hourly wages between $12-$18, as compared to $7-$11 for other F&B roles, such a comparison may not be drawing parallels between apples to apples. Riders’ salaries are not as stable as other F&B roles and they are not paid for waiting time. Buying the uniform and the delivery bag, as well as payment for delivery transport, are also not factored in as well. Besides, riders are faced with challenges when faced with disputes and such shortfalls result in huge gaps in their social safety nets.

Riders' concerns have not been well addressed or represented and platforms should accord these riders basic employment rights as more needs to be done regarding understanding the varying demographics and their needs as well as designing suitable pathways for them to advance. Although gig workers have flexibility, they are also limited by controls set by platforms, similar to an employer-employee relationship.

What do you think can be done further to protect gig workers? Do you agree that CPF contributions should be made mandatory for this group of workers?