What are the platform fee components included in gross earnings that attract CPF contributions?
In general, payments or benefits which are meant to supplement platform workers’ earnings will attract CPF contribution. This is the same principle for employees who may receive various benefits from employers.
However, payments from platform operators meant to reimburse additional expenses already incurred by workers will not be subject to CPF contribution. For example, this can include reimbursements for fuel due to cancelled jobs, and cleaning expenses if customers made a mess in the vehicle.
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CPF contributions are payable on cash payments that are:
- fees directly related to your provision of the platform services and/or supplement your earnings (e.g. extended delivery, Sentosa delivery, pin drop fees, order cancellation fee if it is meant to provide earnings to riders, etc)
- incentives related to the rider’s provision or good performance of platform service, or to reward riders for continued provision of services (e.g. tips, welcome back incentive, new rider incentive, do X get $Y. Any additional cash gifts will also attract CPF if they are related to the provision or performance of the platform service)
CPF contributions are not payable on payments that are:
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not in cash. Any vouchers, or payments-in-kind do not attract CPF.
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unrelated to the provision or performance of platform service (e.g. referral incentives, incentives for participating in Corporate Social Responsibility (CSR) activities, engagement events and focus groups, etc), reimbursement of expenses (e.g. reimbursement for training programme such as safety courses, or order cancellation fee if this is meant to reimburse expenses you incurred to reach a destination)
This information is sourced from CPF
Related questions
What are the items that attract CPF contributions for my platform workers?
Are CPF contributions payable on reimbursements to platform workers for expenses?
Why should tips, especially tips in cash, attract CPF contribution?
Is the relevant CPF contribution rate based on the month the job is placed or the month it is completed or paid for my platform workers?
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