Platform Workers Bill Singapore: CPF & Company Obligations

The New Blueprint for Singapore’s Gig Economy

The Platform Workers Bill in Singapore is a significant change. Parliament passed it in September 2024. It started on 1 January 2025. This is not a minor update. It is an important new law. It changes the relationship between businesses and gig workers.

The government created the Act because platform work can be uncertain. For years, gig workers had few protections. The government and its partners found three main problems:

1. Workers had little savings for retirement and housing. They were not in the Central Provident Fund (CPF) scheme.

2. They had no money to help them if they got hurt at work. This is because the Work Injury Compensation Act (WICA) did not cover them.

They had no formal group to speak for them. This made it hard to negotiate with platform companies.

The Act solves this. It creates a new “third class” of worker. This person is not an employee. They are not a self-employed freelancer. This new “Platform Worker” group has its own set of rights.

This law is essential. The number of gig workers was 88,400 in 2022. But new 2024 data shows the number is now around 67,600 regular platform workers.

This new number is essential. The market is not failing. It is maturing. Some workers found full-time jobs. Delivery demand is lower than during the pandemic. The Ministry of Manpower (MOM) says the market is “stabilising”. The Act is not stopping growth. It is building a strong frame to support this new part of our economy.

Singapore is one of the first countries to pass a law like this. Other countries are still deciding what to do. Singapore acted first. The Act finds a balance. It keeps the flexibility that many workers like. It also ensures workers receive social protection. For businesses, the rules are now clear. New duties have begun.

Are You a ‘Platform Operator’? The Legal Definition Every Business Must Know

This is the most critical question. The new rules apply only to companies that are “Platform Operators”. HR leaders and legal teams must understand this definition. A mistake here can lead to serious legal problems.

Who is a “Platform Worker”?

First, who is a “Platform Worker”? The law covers workers who meet all three of these points:

1. They provide ride-hail or delivery services.

2. They have a “platform work agreement” with a company. This is not an employment contract.

3. The company has “management control” over them.

Who is a “Platform Operator”?

A company is a “Platform Operator” if it provides these services. It must also exercise “management control” over the workers.

This “management control” test is the key part of the law. It has two parts. A company must meet both parts to be an operator.

The Two-Part Test for “Management Control”:

1. Automated Data Use: The company uses an automated system (like an algorithm). This system uses data to make decisions about any of these:

   • Who can work?

   • What tasks do they get?

   • How much to pay them for each task?

   AND

2. Imposition of Requirements: The company sets rules for workers (that are not required by law). This includes any of the following:

   • Setting rules on how to do the job (e.g., service quality, what to say).

   • Stopping workers from setting their own fees.

   • Stopping workers from finding their own clients.

   • Stopping workers from choosing their work hours.

   • Giving rewards or penalties based on performance.

This test directly challenges the idea that platforms are just “marketplaces”. The law now says if your algorithm acts like a manager, you are a manager. You are a “Platform Operator”. You have legal duties.

You may also like: Master MICE staffing strategies

The Big Risk for Staffing Agencies

A staffing agency might feel safe. The Act only covers ride-hail and delivery services for now. This is a grave mistake. The legal framework is the real story, not the limited scope.

Think about a staffing agency that finds “freelance” event staff. It may use a platform to manage them.

• Does its platform automate shift allocation based on worker ratings? (This meets part 1 of the test.)

• Does the agency set the pay rates? Does it penalise workers for no-shows? Does it set service standards? (This meets part 2 of the test.)

That agency acts just like a “Platform Operator”.

The government is already watching other types of gig work. The “management control” framework can be expanded to cover different sectors. For staffing agencies, this is a significant risk. They must now review their business models.

A Deep Dive into Gig Worker CPF 2026 Obligations

The new law forces platform workers to join the Central Provident Fund (CPF) scheme. This is a significant change for the company’s finances and paperwork.

The Core Duty

From 1 January 2025, platform operators must:

1. Deduct the worker’s share of CPF from their pay.

2. Contribute the operator’s own share of CPF.

3. Submit both payments to the CPF Board every month.

This ends the old system. Workers used to pay only into their MediSave Account. Now, their Ordinary, Special, and MediSave Accounts (OSA) will all get funds.

The “1995 Divide”: Who Must Join

This is the biggest challenge for HR. The law creates two different systems based on age.

• Mandatory (Born on or after 1 Jan 1995): These younger workers must be in the new CPF scheme. Operators must pay CPF for them.

• Voluntary Opt-In (Born before 1 Jan 1995): These older workers are not automatically included. They must choose to opt in.

This choice is significant.

• If the older worker opts in: They are treated like the younger workers. Both the worker and the operator pay into the CPF accounts.

• If the older worker does NOT opt in: They stay on the old system. They only pay into their MediSave Account. The platform operator does not have to pay its share.

This choice cannot be changed later. Operators must know the opt-in status of every worker born before 1995.

New Rates Are Phased In

The new CPF payments will be phased in over five years. This happens from 2025 to 2029. The goal is to match the full CPF rates for regular employees gradually.

In the first year (2025), a worker aged 35 or below will pay 3.5% of their net earnings. The operator will also pay 3.5%.

The government has a support scheme. It is called the Platform Workers CPF Transition Support (PCTS).

• It helps offset the worker’s new CPF payments.

• It is for lower-income workers. They must earn $3,000 or less per month.

• The support level goes down each year:

  • 2025: 100% offset of the worker’s increase.

  • 2026: 75% offset of the worker’s increase.

  • 2027: 50% offset.

  • 2028: 25% offset.

Indicative CPF Rates (Mandatory Scheme)

This table shows the likely rates for a worker aged 35 or below.

Year	Worker Age	Worker’s Share (Approx.)	Operator’s Share (Approx.)	Total CPF
2025 (Year 1)	35 & Below	3.5%	3.5%	7.0%
2026 (Year 2)	35 & Below	~6.0% (3.5% + 2.5%)	~7.0% (3.5% + 3.5%)	~13.0%
…	…	…	…	…
By 2029 (Full)	35 & Below	20%	17%	37%

Note: Rates will be phased in. The 2026 worker share increase (2.5%) will be offset by 75% through the PCTS for eligible workers.

What this means for HR

The gig worker CPF 2026 rules are complex. They mean two big things for HR.

First, the “1995 divide” creates a lot of new work. HR systems must be changed. They must track every worker by birth date. They must also track the “opt-in” status for every older worker. This status changes if the company has to pay.

Second, HR must communicate well. Workers will see a new deduction. They may see it as a pay cut. Good HR leaders will explain the whole story. They should tell workers: “You are now saving for your home and retirement. We are paying into this fund on your behalf. In 2025, the government will pay 100% of your new share. In 2026, it will pay 75% of the increase.”

This changes a new cost into a new benefit.

Understanding New Platform Company Obligations for Work Injury Compensation

The second significant change is work injury compensation. Before, workers had no protection if they were hurt. Now, operators must buy Work Injury Compensation (WIC) insurance for all platform workers.

What the Insurance Must Cover

This is not a basic plan. The law requires the insurance to be equal to the cover that regular employees receive under the Work Injury Compensation Act (WICA).

This includes large payments:

• Medical Bills: Up to $45,000 for one year.

• Permanent Injury: A minimum of $97,000 and a maximum of $289,000.

• Death: A minimum of $76,000 and a maximum of $225,000.

What “At Work” Means

HR leaders must know when a worker is “at work”. The insurance only covers injuries during two specific times:

1. “Pick-up”: From the moment the worker starts travelling to the pick-up location.

2. “Delivery”: From the moment the worker begins travelling to the drop-off location.

What Is NOT Covered

A worker is not covered if they are hurt while:

• Waiting for a task. This includes sitting and waiting for an order.

• Running personal errands.

• Using alcohol or drugs.

• Using a vehicle that is not legal or licensed.

How to Calculate Pay-Outs

Insurers need to know a worker’s net earnings. To make this simple, the law sets a “Fixed Expense Deduction Amount”.

This is a set percentage. It is deducted from gross pay to determine net income for insurance claims.

• Cars, Vans, Lorries: 60%

• Motorcycles, Power-assisted bicycles: 35%

• Bicycles, On foot, Public transport: 20%

What this means for HR and Data

This new rule has two big effects.

First, your app’s data is now your central legal defence. When a worker has an accident, the insurer will ask: “Was the worker ‘at work’?”. Were they travelling to a pick-up (a covered claim)? Or were they waiting for a task (not a covered claim)?.

The only proof is your platform’s server logs. Your data must be accurate and easy to find.

Second, HR must now track each worker’s mode of transport. This data is key for calculating both WIC and CPF payments.

Your New Compliance Checklist: Record-Keeping, Earnings Slips, and Data Transparency

The new platform company’s obligations create more paperwork. HR leaders must update their systems. Here are five key tasks.

1. Notify MOM

You must tell the Ministry of Manpower (MOM) that you are a “Platform Operator”. This is the first step.

2. Keep Detailed Records

You must now keep detailed records for all your platform workers. This includes:

• Full name and NRIC number.

• Date of birth.

• How much did you pay them?

• All deductions.

• Details of CPF contributions.

3. Give Earnings Slips

You must give an earnings slip to all platform workers. This is a new legal rule. It is like a payslip.

4. Put the Right Details on the Slip

The law is very clear about what the slip must show. It must include:

• A statement that it is an “earnings slip for a platform worker”.

• The operator’s and worker’s full names.

• The dates of the earning period.

• The total amount paid.

• The total amount deducted.

• Specific details on CPF contributions.

• The net amount paid and the slip date.

5. Give the Slip on Time

You can give the slip in electronic form. You must give it to the worker within two months of the task.

What This Means: Slips and Transparency

These new rules have two more profound effects.

First, the earnings slip is a legal document. The law says you must label it “earnings slip for a platform worker”. This creates a paper trail. It proves the worker has this new legal status. A company cannot later claim the worker was just “self-employed”.

Second, this leads to “algorithmic transparency”. The law does not say “explain your algorithm”. But this will happen in practice.

1. A worker will get their new earnings slip.

2. They will see pay or deductions they do not understand.

3. They will take the slip to their new Platform Work Association (PWA).

4. The PWA will then start a formal dispute over “fair pay”.

5. The operator will then have to explain. They must show how their automated system decided the worker’s pay.

HR leaders must be ready to explain and defend their pay algorithms.

The Rise of Collective Representation: What PWAs Mean for HR

The third significant change is about worker voice. The law creates a new avenue for workers to engage in collective action.

A New Legal Voice

The Act gives workers the right to form and join Platform Work Associations (PWAs).

The Power to Negotiate

PWAs that are “recognised” by a company can negotiate as a group with that company. This is a powerful new right. A PWA can negotiate for all its members on topics like:

• Better work conditions.

• Fair pay.

• Improved benefits.

• Any “terms and conditions of work”.

A Formal Way to Settle Disputes

This is not just talk. The law creates a formal process for solving problems.

1. The PWA and the company try to reach an agreement.

2. If they fail, the case goes to MOM to help find a solution.

3. If that fails, the case can go to the Industrial Arbitration Court. The court’s decision is final.

What this means for HR

This new reality changes everything for HR.

First, the relationship is now 1-to-Many, not 1-to-1.

• Before: A worker’s complaint was a customer service problem.

• Now: A complaint from a PWA is an industrial relations problem.

HR teams must learn a new skill: formal negotiation with powerful, legal associations.

Second, the PWAs will not stop at CPF and WIC. Those are now the minimum. The PWAs will use their new legal power to negotiate the issues that workers care most about:

• Fairness: How is work given out?

• Pay: Why did one job pay $5 and another pay $7?

• “Deactivation”: A worker’s biggest fear is being removed from the app. This will now be a formal issue for negotiation.

Strategic Implications for HR Leaders, Staffing Agencies, and Gig Economy Users

Leaders must look past basic rules. They must understand the indirect effects on their business.

For HR Leaders (at Platform Operators)

• Budget for New Costs: The new costs are large and permanent. You must budget for employer CPF payments, WIC insurance, and new admin work. One report estimates the 5-year cost to the industry at US$368 million.

• Update All Contracts: Check all worker contracts. You cannot have clauses that ask workers to give up these new rights. Such clauses are now illegal.

• Manage Data Risks: Your company is now legally responsible for worker data. Poor data control is a considerable legal risk. This data supports WIC claims and pay disputes.

For Staffing Agencies (A Critical Risk)

• Beware “Misclassification 2.0”: The Act creates a new way to misclassify workers. The old risk was “employee vs. freelancer”. The new risk is “freelancer vs. platform worker”.

• Avoid the “EOR Time Bomb”: As we saw in Section 2, any staffing agency that uses a platform to manage “freelancers” is at risk. If your tech platform uses “management control”, you are acting like a Platform Operator. This is a significant threat. If the law’s scope expands, your company could be reclassified. You could owe years of back-pay for CPF and work injuries.

For Businesses (Users of Gig Services)

• Expect Higher Prices: The new costs will be passed on to the customer. Your company must budget for higher ride-hail and delivery costs.

• Avoid “Joint-Employer” Risk: This is a subtle risk. Do not try to “manage” the platform’s workers. If your bank hires a courier platform, do not force the riders to use your device or follow your specific rules. If you do, you could be seen as jointly controlling them. This could make you jointly responsible for their WIC or other costs. Your company should buy a service, not manage a worker.

Your First-Mover Action Plan: Preparing for 2026 and Beyond

The Platform Workers Act is here. The changes for 2025 are in effect. The next step is the gig worker CPF 2026 ramp-up. Businesses that act now will be in a stronger position.

Now (Q1 2026): Audit Your “Management Control”

(For Staffing Agencies and platform-like businesses)

Read the two-part “management control” test from Section 2. Does your tech platform automate pay and set rules? If yes, you must plan for new legal risks. Talk to a lawyer.

Now (Q1 2026): Upgrade Your Payroll Systems

(For Platform Operators)

You must update your systems now. They must be able to sort your workforce by the 1 January 1995 birth date. They must track the “opt-in” status for every worker born before that date. This is a key legal duty.

By Q2 2026: Calculate the Full Cost

(For Finance and HR Leaders)

You must calculate the full 5-year cost of the new CPF payments. You must also get quotes for your new WIC insurance. These are new, permanent costs for your business.

By Q2 2026: Secure Your Data

(For IT and Legal Teams)

Your app’s data is now a key legal document. It is your primary defence in WIC claims and pay disputes. Make sure this data is accurate, secure, and stored in a way that allows for audit.

By Q3 2026: Create a Worker Communication Plan

(For HR and Communications Teams)

Tell your workers about the 2026 changes before they happen. Explain the new rules as benefits. Clearly explain the 2026 PCTS. Show them that the government will pay for 75% of the increase in their CPF. This helps with take-home pay concerns.

By Q3 2026: Create an Industrial Relations Plan

(For Senior HR and Leadership)

Find the Platform Work Associations (PWAs) in your field. Open a formal line of communication. Please do not wait for them to contact you. Prepare simple, data-backed explanations for your pay algorithms, service rules, and deactivation policies. This is the new way of managing labour relations.