How will the Fixed Expense Deduction Amount be applied if I use different modes of transport?
The Fixed Expense Deduction Amount (FEDA) used for calculation of CPF will be based on the mode of transport for the respective job(s) completed.
For example:
Example 1: Platform worker X uses a bicycle when working for platform operator A, and a car when working for platform operator B.
- Platform operator A will use the FEDA of 20% to compute the platform worker's net earnings for CPF contributions.
- Platform operator B will use the FEDA of 60% to compute the platform worker's net earnings for CPF contributions.
Example 2: Platform worker Y uses motorcycle from 1 to 15 Jan, and switches to bicycle from 16 to 31 Jan.
- For jobs completed on 1 to 15 Jan on motorcycle, the platform operator will use the FEDA of 35% to compute the platform worker's net earnings for CPF contributions.
- For jobs completed on 16 to 31 Jan on bicycle, the platform operator will use the FEDA of 20% to compute the platform worker's net earnings for CPF contributions.
This information is sourced from CPF
Related questions
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