New platform worker law: protecting workers or higher prices?

The Platform Workers Bill, passed in parliament on 10 September, has prompted worries online that consumers might ultimately bear the costs of the new protections for platform workers.

Platform workers are ride-hail and delivery workers who provide these services for an online platform.

Under the bill, which will take effect on 1 January 2025, they will enjoy work injury compensation coverage and CPF contribution rates at the same level as regular employees.

The CPF contribution rates for platform workers will gradually increase each year by up to 2.5 percentage points from workers, and 3.5% of net earnings from operators.

By 2029, these rates will match those of salaried employees and employers respectively.

Debating the bill in parliament, MPs voiced support for the protections but raised concerns about the higher costs that come with them.

Senior Minister of State for Manpower Koh Poh Koon assured that the law includes measures that prevent operators from passing on the costs to the workers.

The public, however, are more concerned about the costs being passed on to consumers.

Many netizens have expressed fears that we will soon see higher delivery fees and ride-hailing fares, though a few argued that consumers have the choice to not use the platform.

Some also praised the new protections for granting platform workers equal rights, and echoed Minister Koh’s sentiments that the higher costs arising from them are no different from the business costs that other employers are already incurring.