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How will Fixed Expense Deduction Amount (FEDA) be applied for platform workers that use multiple modes of transport or for incentives which are not based off any one mode of transport?

Updated by CPF
Platform operators should apply the Fixed Expense Deduction Amount (FEDA) based on the mode of transport declared by the platform worker, including if multiple modes of transport were used.
 
For payments or benefits not tied to one specific mode of transport, the lowest FEDA will be applied.
 
Illustration:
 
Platform worker A initially used a motorbike for food delivery, and subsequently switched to a bicycle.
 
He earned multiple payments for the month:
 
  1. Earnings from jobs completed on bicycle= $1,000 [FEDA: 20%]
  1. Earnings from jobs completed on motorbike = $2,000 [FEDA: 35%]
  1. Bonus payment for completing a certain number of jobs (using both bicycle and motorbike) = $1,000 [FEDA: 20%, i.e. lower of FEDA for bicycle and motorbike]
Net earnings: $1,000 * (1-0.2) + $2,000 * (1-0.35) +  $1,000 * (1-0.2) = $2,900

This information is sourced from CPF.

Topics:

Employer - Platform OperatorHow much CPF contributions to contribute

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