Why is it mandatory for platform workers born in 1995 or later to have increased CPF contributions aligned to employees, while those born before 1995 have the option to opt in?

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Accepted Answer

Younger platform workers have a greater need for CPF contributions because of housing needs and can benefit more from the compounding interest given their longer runway for accumulation.

Older platform workers can choose to opt in to the increased CPF contributions if they wish to, as they may have existing plans to finance housing and retirement needs.

Older platform workers who do not opt in will continue to be required to make CPF MediSave contributions, and will not receive the platform operator’s share of CPF contributions.

Platform operators will deduct the CPF contributions from platform workers’ earnings as and when they earn and transmit them to CPF Board monthly for all platform workers, including the MediSave contributions for those who do not opt in.

Why is it mandatory for platform workers born in 1995 or later to have increased CPF contributions aligned to employees, while those born before 1995 have the option to opt in?

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