For platform workers who opt in, why is the allocation of CPF contributions into the MediSave account higher than the Ordinary and Special or Retirement Accounts in 2025? How will platform workers be better off by opting in?

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Accepted Answer

It is important that platform workers (PWs) have sufficient savings to meet their healthcare needs, unlike salaried employees who have healthcare protections from their employers.

Hence, the MediSave allocation rate of between 8% – 10.5% remains the same whether PWs opt in to increased CPF contribution or not (see chart below).

The increase in PWs’ CPF contributions will then be allocated to the Ordinary and Special or Retirement accounts respectively. You can view the allocation rates for 2025 - 2028.

By opting in for increased CPF contributions, PWs will receive the platform operator (PO) share of CPF contributions of 3.5% in 2025 which increases to up to 17% in 2029. These are additional savings for platform workers’ housing and retirement needs.

PWs who use the Ordinary account (OA) contributions for mortgage instalments can free up more cash for other expenses. This is because the CPF contributions allocated to the OA (PW and PO share) will be higher than the increase in CPF contributions that the PW has to make.

For example, in 2025, a 40-year-old PW with monthly net earnings of $3,000 who opts in to higher CPF contributions would receive 4.5% of his net earnings ($135) in his OA – which can be used to pay for his mortgage instalments. This is higher than the total increase in his own share of CPF contributions, at 2.5% of his income ($75).

In other words, for every additional $1 in CPF that he contributes, he gets $1.80 in his OA which can be used to pay for his mortgage instalments!

For platform workers who opt in, why is the allocation of CPF contributions into the MediSave account higher than the Ordinary and Special or Retirement Accounts in 2025? How will platform workers be better off by opting in?

Related questions

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If I do not opt in to increase my CPF contributions as a platform worker, will I still receive CPF contributions from my platform operator?

If I do not opt in to increase my CPF contributions as a platform worker, will I be subject to the same CPF contribution rate as before 1 January 2025?

What is the increase in platform workers’ share of CPF Ordinary and Special or Retirement Account contribution rates, which is used to compute Platform Workers CPF Transition Support (PCTS)?