Singapore’s Platform Workers Bill: Transforming the Gig Economy in 2025

Posted by Written by Ayman Falak Medina Reading Time: 3 minutes

On 1 January 2025, Singapore’s Platform Workers Bill officially came into force, marking a significant milestone in the evolution of labor protections for gig workers. In an economy increasingly reliant on platform services, such as ride-hailing, food delivery, and freelance logistics, this legislation redefines the responsibilities of platform companies and the rights of their workers. It addresses long-standing issues related to financial security, workplace protection, and fair treatment while maintaining the flexibility that defines the gig economy.

The bill’s introduction reflects Singapore’s commitment to staying ahead of global labor trends by creating a more inclusive and equitable system for workers in non-traditional employment structures. However, the nature of gig work has often left these workers without access to the benefits and protections enjoyed by full-time employees.

As Singapore ushers in this new regulatory framework, the implications extend beyond just workers and companies. Consumers, too, will feel the ripple effects of these changes, as companies adapt their business models to comply with the law.

Key features of the Platform Workers Bill

The Platform Workers Bill introduces transformative measures for gig workers in Singapore. Here’s an overview of the key provisions:

Mandatory CPF contributions

CPF contributions, phased in starting in 2024, became mandatory for both platform companies and workers in 2025. This ensures workers can build savings for housing, healthcare, and retirement. Contributions are gradually increasing to align with rates for formal employees.

Workplace injury compensation

Platform workers are now entitled to compensation for workplace injuries, with platform companies mandated to provide insurance. This ensures workers have financial protection in the event of accidents during work.

Representation and bargaining rights

Workers now have the right to form or join unions to negotiate for better terms collectively. This provides a formal avenue for voicing concerns and seeking improvements in pay and working conditions.

Anti-discrimination measures

Companies must ensure the fair treatment of platform workers and implement safeguards against discrimination based on age, race, or gender. This aligns with Singapore’s broader labor equality initiatives.

Challenges and opportunities in 2025

The implementation of the Platform Workers Bill has introduced new challenges for both workers and companies. For platform companies, the requirement to contribute to workers’ CPF accounts and provide workplace injury insurance has significantly increased operational costs. Many companies have responded by adjusting their pricing models or commission structures, which could indirectly impact the earnings of platform workers. Additionally, consumers might face higher fees as businesses pass these costs along, creating a ripple effect across the gig economy.

For platform workers, mandatory CPF contributions have resulted in reduced take-home pay. While this adjustment may initially feel like a setback, the contributions provide long-term benefits, including enhanced retirement savings and better financial security. This trade-off requires workers to adjust to a more structured financial model.

Another key challenge is balancing regulatory measures with the inherent flexibility of gig work. The bill provides formal protections and benefits but introduces structures that could reduce the agility and freedom that attract workers to the gig economy. Both workers and companies are finding ways to maintain flexibility while complying with the new regulations, and adjustments are likely to continue as the gig economy matures under this framework.

Impact on consumers

The introduction of enhanced protections for platform workers is expected to increase operational costs for platform companies. These companies may pass on some of these costs to consumers through higher service fees. Senior Minister of State for Manpower Koh Poh Koon acknowledged this possibility, stating that such costs are “part and parcel” of doing business and are like expenses that other employers already incur. He emphasized that providing basic protections for platform workers ensures a level playing field among companies operating in Singapore.

A New era for Singapore’s gig economy

Implementing the Platform Workers Bill signifies a progressive step in redefining labor practices for the gig economy in Singapore. Balancing worker protection with flexibility aims to create a more sustainable and equitable ecosystem for all stakeholders.

As 2025 unfolds, the full impact of this legislation will become clearer, shaping the future of gig work in Singapore.

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