Over one in four eligible platform workers opted in to make higher CPF contributions as at Sept 2025

SINGAPORE – For Mr Mohamed Farouq, cash in hand from his passengers is more important than making CPF contributions.

“It’s difficult because cash is what I need at the moment,” said the private-hire car driver, 49, a father of three.

Mr Farouq said choosing to make CPF contributions feels like he is docking his own pay. As it is, “it’s hard to put money aside”, he added.

He said he is not overly worried about his CPF savings, saying: “I have some savings and I have a plan.”

He aims to leave driving later in 2026, when a three-year lease on his car ends. He has completed a course in phlebotomy – the process of drawing blood from a vein – and intends to switch to a job in the healthcare sector.

“Driving is not something I planned to do long-term... it’s quite impossible (to earn a living),” he added.

Mr Farouq is among platform workers born before Jan 1, 1995, who may choose to opt in to make higher CPF contributions beyond the mandatory MediSave payments.

While there is no deadline for older platform workers to subscribe to making higher CPF contributions, the decision is irreversible once made.

Under the Platform Workers Act, it is mandatory for younger platform workers born on or after Jan 1, 1995, to contribute more to their CPF accounts.

Since the Act took effect on Jan 1, 2025, about 26,500 of 99,200 platform workers born before Jan 1, 1995, or 27 per cent, have committed to higher CPF contributions as at September 2025.

The opt-in rate is higher for those who rely on platform work as their main or only source of income at 32 per cent, or some 19,100 out of 59,800 platform workers.

Manpower Minister Tan See Leng provided these figures on Jan 12 in response to a parliamentary question from MP Yeo Wan Ling (Punggol GRC).

As at September 2025, there are 7,400 platform workers who do not rely on platform work as their main or only source of income, but have opted in, the Ministry of Manpower (MOM) told The Straits Times.

Ms Yeo, who is also executive secretary of the National Transport Workers’ Union, had asked how many eligible platform workers enrolled for higher CPF contribution rates, if the reasons for those who did not do so were recorded, and what those reasons were.

Dr Tan said the MOM does not collect data on why workers choose not to do so.

“We will continue to work with platform operators and platform work associations to reach out to platform workers to encourage more to opt in,” he added.

To address concerns over lower take-home pay, MOM said in December 2024 that lower-income platform workers who opt in will receive monthly cash payments to offset the year-on-year increase in CPF contributions.

These payments will cover 100 per cent of the increase in 2025, tapering to 75 per cent in 2026, 50 per cent in 2027 and 25 per cent in 2028.

Older platform workers who do not opt in will continue to contribute only to MediSave and will not receive CPF contributions from platform operators, MOM said.

Ms Carmen Ortega, who has been a private-hire vehicle driver for more than 10 years, chose to contribute more to her CPF accounts.

The 40-year-old said that she feels it is “more worth it” to do so because platform companies will need to contribute their share to her CPF savings, which will help to fund her purchase of a three- or four-room Housing Board flat in the future.

Similarly, Mr Kelvin Lam – a private-hire vehicle driver for a decade – sees higher CPF contributions as a long-term investment, since they include top-ups from platform companies, which earn compound interest over time.

“I do not want to be a burden to society in my old age – with no savings, no accommodation and no money for medical fees,” added the 50-year-old.

He said there may be a significant number of platform workers who will retire without enough CPF savings, and he feels that they may be forced to live from hand to mouth and without a roof over their heads.

On the other hand, delivery rider Seth Ong is not planning to register to contribute more to his CPF accounts, as he believes he would need to work even longer hours to earn the same amount of money before the deduction of CPF contributions.

Noting that he already has a family home fully paid for by his late father, the 34-year-old said saving for “a distant future” is a luxury for those who are well-off.

He said he would prefer to have more cash in hand, especially because it is “really unpleasant” to have a portion of his already inconsistent income deducted for CPF contributions.

In response to queries from ST, Ms Yeo said NTUC and its affiliated platform work associations have been actively engaging platform workers on the ground to help them understand the long-term benefits of choosing higher CPF contributions for housing and retirement.

Ms Yeo added that some workers worry opting in could affect how platforms allocate earnings and incentives to them, even though platforms are not allowed to do so. Others prefer to keep more cash available.

“There are also those taking a wait-and-see approach before deciding,” she noted.

She added that NTUC and platform work associations are also working with the CPF Board to help platform workers better understand how CPF works so they can make informed decisions.

When asked if these opt-in figures are above or below expectations, Ms Yeo said NTUC will continue watching this closely to ensure platform workers’ queries are addressed and that the roll-out of the higher CPF contributions is fair – given that they are now going into the second year of opting in.

“This is ultimately about our platform workers’ long-term retirement and housing needs, and it is important that platform workers make an informed choice,” she added.