Passing of Platform Workers Bill key milestone in safeguarding workers' livelihoods: NTUC

The National Trades Union Congress (NTUC) has voiced its support for the new Platform Workers Bill, which was passed in Parliament on Tuesday (Sept 10).

In a media statement on the same day, NTUC said that the passing of the bill is welcomed and strongly supported by it as well as its affiliated associations: the National Taxi Association, National Private Hire Vehicles Association and National Delivery Champions Association.

"This development marks a win for our platform workers, and a significant milestone in NTUC's ongoing efforts to safeguard platform workers' livelihoods," it said.

It added that the Platform Workers law will allow NTUC to protect and enhance platform workers' rights and welfare when it forms Platform Work Associations (PWAs) in the future.

'Significant win for platform workers'

The law will open up more grievance resolution mechanisms for platform workers, including conciliation with the Ministry of Manpower and escalation to the Industrial Arbitration Court, when necessary. This structured system ensures platform workers have access to fair dispute resolution depending on their issue's severity, said NTUC.

In response to the Platform Workers Bill being passed, NTUC Secretary-General Ng Chee Meng said that the new law is a "significant win for platform workers" and "an important milestone" for its work in championing their interests, such as better earnings, welfare and work prospects.

"Under the new law, platform workers can look forward to better earnings that will support their retirement and housing needs, as well as better protections to safeguard their safety at work," Chee said.

"We are committed to protecting and enhancing the livelihoods of platform workers, because every worker matters."

Changes to CPF, work injury compensation

The Platform Workers Law, set to take effect on Jan 1 next year, will require an increase in the amount of contributions paid into platform workers' Central Provident Fund (CPF) accounts.

Currently, platform workers are only required to make MediSave contributions of up to 10.5 per cent of their net earnings.

Under the new law, the CPF contribution rate for those born after Jan 1, 1995, and older workers who opt in will increase by up to 2.5 per cent in 2025.

The rate will continue to rise and by 2029, platform workers will contribute to their CPF at the same rate as employees.

Platform operators will also be required by law to contribute to platform workers' CPF accounts.

This will start at 3.5 per cent of net earnings in 2025 and increase to become on par with what employers contribute for employees in 2029.

The Platform Workers Law will also require a standardised work injury compensation regime for these workers, offering the same level of coverage as employees.

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bhavya.rawat@asiaone.com