The Ultimate HR Guide to Platform Workers Act in Singapore 2025

What Is the Platform Workers Act Singapore?

The Platform Workers Act, effective January 1, 2025, introduces the rights, obligations, protections, and representation for both platform workers and operators in Singapore.

Recognizing the unique challenges faced by platform workers – think fluctuating incomes and work-related injury risks – this landmark legislation bridges the gap between traditional employment and pure self-employment.

While platform workers enjoy scheduling flexibility, they lack the full autonomy of independent contractors due to platform operator controls. This necessitates a distinct classification and tailored protections.

Who Is Covered Under the Platform Workers Act?

The Act covers both platform workers and platform operators and applies to all platform-based services. This includes on-demand delivery services (e.g. GrabFood, Deliveroo) alongside ride-hailing options (e.g. Grab, TADA, Gojek).

Who Are Considered “Platform Workers”?

A platform worker is typically a ride-hailing or delivery worker who is under the management control of the platform operator when providing the platform service in exchange for payment or benefit.

If you are not under the management control of a platform operator, you are considered a self-employed person operating under a contract for service, not a platform worker.

If you are employed under a contract of service with a platform operator, you are classified as an employee covered under the Employment Act, not a platform worker.

Platform workers enjoy a degree of independence, setting their own schedules and work locations. However, the platform operator establishes the rules and retains management control, determining aspects like fare prices and service fees.

Who Are Considered “Platform Operators”?

Platform operators offer platform services and hold management control over platform workers.

To break it down further, a platform operator:

• Provides ride-hailing or delivery services.
• Directly manages one or more platform workers.
• Can be an individual or a formal organization such as a sole proprietorship, corporation, association, or partnership.

Typically, these operators establish service standards, pricing structures, payment terms, and the assignment of work for their platform workers.

For instance, in Singapore, companies like Grab, Gojek, Foodpanda, and Deliveroo exemplify platform operators. Grab, for example, mandates a Code of Conduct for its drivers and sets specific rules regarding payment withdrawals.

Mandatory Notification of Platform Operators

Starting January 1, 2025, if your company qualifies as a "platform operator" under the Platform Workers Act, you must notify the Ministry of Manpower (MOM) within 14 days of meeting the requirements.

These rules apply from either January 1, 2025, or the date your company becomes a platform operator (whichever happens later), not just from the date you inform MOM.

If a company stops being a platform operator, they also need to inform MOM about this change.

If you’re not sure whether you qualify as a platform operator, you may consider getting legal counsel for clarity.

You can also use the self-assessment checklist as a helpful starting point. Keep in mind, though, that this checklist is just a tool to assist you and isn't a substitute for legal advice. Your specific situation will ultimately determine if you meet the criteria.

Once you notify MOM, your company will be added to a public list of platform operators based on notification.

If a platform operator incorrectly determines that they don't qualify, they will still have to pay any unpaid Central Provident Fund (CPF) contributions or work injury compensation they owe.

Platform operators may also face penalties if they don't make CPF contributions or provide work injury compensation on time, or if they fail to notify MOM that they are a platform operator.

The Differences Between Platform Workers vs. Employees vs. Self-Employed

• Employees:
  • Work under a contract of service.
  • Have a formal employee-employer relationship (often written agreement).
  • Examples: managers, labourers, professionals (lawyers, doctors).
  • Not considered platform workers.
• Platform Workers:
  • Work under a contract for service (platform work agreement).
  • Have a client-contractor relationship with the platform.
  • This is a distinct category recognized by the Act.
  • Experience some control from the platform operator (job allocation, payment).
• Self-Employed Individuals:
  • Also work under a contract for service as independent operators.
  • Have full autonomy over:
    • Working hours and schedule.
    • Salary determination.
    • Working for multiple clients.
    • Not under the control of one platform.
  • Differ from platform workers due to the level of control.

The Protections Available to Platform Workers Under the Platform Workers Act / Key Benefits for Platform Workers

To better safeguard platform workers, the Act focuses on strengthening protections related to their financial security, workplace safety, and rights of representation, addressing these crucial aspects in three main areas.

Mandatory CPF Contributions

Here's what HR needs to know about the key CPF changes for platform workers:

• Employer & Employee Contributions: Platform operators will contribute to both the employer and employee CPF accounts for their workers, supporting retirement savings and healthcare.
• Automatic Deductions: Platform operators will deduct and submit CPF contributions monthly on behalf of their workers.
• For Workers Born on/After Jan 1, 1995:
  • CPF contribution rates will gradually increase over 5 years (reaching up to 20% employee, 17% employer by 2029).
  • Contributions will go to Ordinary, Special, and MediSave Accounts.
  • Workers will see an increase in overall earnings due to the operator's contributions.
• For Workers Born Before Jan 1, 1995:
  • Option to Opt-In: Workers can choose to opt in to the increased CPF contribution rates and receive contributions from platform operators.
  • If Not Opting In: Only MediSave contributions will be deducted and submitted - no employer contributions will be made.

CPF Contribution Rates for Platform Workers Born on or After 1 Jan 1995 or Those Born Before 1 Jan 1995 and Have Opted In

Source: CPF Official Website

CPF Contribution Rates for Platform Workers Born Before 1 Jan 1995 and Have Not Opted In

Source: CPF Official Website

You can use the platform worker CPF contribution calculator to compute the CPF contributions applicable to your platform workers.

Platform Workers CPF Transition Support

The Platform Workers CPF Transition Support (PCTS) helps ease concerns about reduced take-home pay as platform workers' CPF rates gradually align with employee rates. The government is offering PCTS from 2025 to 2028.

To qualify for PCTS, a platform worker must:

• Be a Singapore citizen.
• Be born in 1995 or later, OR born before 1995 and have opted in to higher CPF contributions.
• Have a total net monthly income from platform work (after deducting Fixed Expense Deduction Amount), plus income from other employment sources, does not exceed $3,000.
• Have an increase in their share of CPF contributions to their Ordinary and Special Accounts compared to the previous year.

Eligible lower-income platform workers will receive monthly cash to offset part of the yearly increase in their CPF contributions.

Workfare Income Supplement scheme

Starting 2025, eligible lower-income platform workers will receive WIS payments monthly instead of once a year.

From 2029, platform workers with increased CPF contributions (either mandatory or opted-in) will get higher WIS payments at the same level as employees, once their CPF contribution rates fully align with that of employees. They will receive a larger portion - 40% of WIS payments in cash, up from the current 10%.

Work Injury Compensation

Effective January 1, 2025, platform operators must provide work injury compensation (WIC) insurance for their workers, comparable to traditional employee coverage under the Work Injury Compensation Act (WICA).

This means:

• Mandatory Insurance: Platform operators are legally required to secure WIC insurance for their delivery riders and private-hire vehicle drivers.
• Scope of Coverage: This insurance covers work-related accidents and occupational diseases incurred during specific work tasks:
  • Pick-up: From the start of travel to the pick-up location until leaving it.
  • Delivery: From the start of travel to the drop-off location until leaving it.
  • Exclusions: Coverage does not apply while workers are waiting for jobs.
• Eligibility: Workers can claim if injured during covered tasks or if they contract an occupational disease due to their work. However, claims may be denied if the worker was unlicensed or the vehicle was illegally modified.
• Claim Process:
  • Workers inform the platform operator of the incident.
  • The operator files a work injury report with the Ministry of Manpower (MOM).
• Liability for Multiple Platforms:
  • MOM will prioritise liability based on work stages (deliveries take precedence over pickups) to limit it to one operator if possible.
  • If multiple operators are liable, costs will be apportioned based on the worker's earnings from each platform, with a lead insurer managing the claim. Compensation will be based on the higher-paying sector's net earnings.
• Dispute Resolution: Platform workers can object to claim assessments with MOM for adjudication.
• Comparable Benefits: Platform workers will receive similar WIC benefits as traditional employees, including compensation for:
  • Income loss during medical leave/hospitalisation (up to $45,000).
  • Permanent/current incapacity (between $97,000 and $289,000 lump sum).
  • Death (between $76,000 and $225,000 lump sum).
  • Note: Compensation for light duties does not apply.
• Compensation Calculation: Based on the worker's earnings in the 90 days preceding the accident (or fewer if they worked less than 90 days).

Platform Work Associations

The Platform Work Associations allows platform workers to collectively advocate for their interests. Here's what HR professionals need to know:

• Collective Negotiation Power: Platform workers can now form official associations to negotiate with platform operators on crucial aspects like working conditions, pay, and benefits.
• Legal Framework: The Act provides a legal structure for these Platform Work Associations (PWAs), enabling them to represent workers' concerns more effectively.
• Regulation & Oversight: The Act and its subsidiary legislation ensure the proper management of PWAs, including financial accountability and fair elections of officers.
• Formal Registration: PWAs must register with a newly established Registry of PWAs, overseen by the Ministry of Manpower (MOM).
• Representation & Negotiation: Registered PWAs can represent platform workers in disputes and negotiate on their behalf, provided they have the mandate through operator recognition or member ballots.
• Purpose of PWAs: These associations aim to:
  • Foster positive relationships between platform workers and operators.
  • Improve working conditions and the economic well-being of platform workers.
  • Contribute to productivity gains for all stakeholders and the Singaporean economy.
• Registry for Applications: The Registry of Platform Work Associations is the central body for processing applications from groups seeking to register as PWAs.

What Happens If Platform Operators Do Not Comply with Their Obligations Under the Platform Workers Act

The Platform Workers Act places new responsibilities on platform operators. Not meeting these obligations can lead to consequences such as administrative penalties.

Late CPF payments (after the 14th of the following month, or the next working day if it falls on a weekend/holiday) will trigger enforcement by MOM and relevant authorities. This includes late payment interest of 1.5% per month, starting the day after the due date.

How HR Can Prepare for the Platform Workers Act

For HR leaders, it's important to stay ahead of these changes. Here's what you need to know about complying with the Act.

• Notify the Commissioner of the start or cessation of their business
• Maintain worker records (past and present)
• Issue earning slips
• Ensure accurate CPF calculations and record-keeping

• Platform operator contracts with platform workers must include:
• Restrictions on workers soliciting their own clients.
• Limitations on worker ability to negotiate fees with end users.

It is the operator’s responsibility to refrain from directly or indirectly inducing workers to waive their rights under the Act.

• Update policies and procedures to address platform worker needs.
• Include provisions for discrimination, harassment, and grievance resolution.