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HomeTop Global NewsGrab, Gojek support better job security for Singapore gig workers

Grab, Gojek support better job security for Singapore gig workers

GrabFood Delivery Rider in Singapore.

Brian van der Beek | Bloomberg | Getty Images

Southeast Asian tech giants grab And gojek said they are “pro” recommendations made by an advisory committee Extending gig worker protections to Singapore from 2024.

In Singapore, platform or gig workers, often ride-hailing or food delivery drivers, have so far been considered self-employed. As a result, they do not receive employer contribution to the Central Provident Fund, National Pension Savings Scheme.

As of 2020, the city-state’s manpower ministry estimated that such workers made up nearly 3% of resident workforceor 79,000 people.

While the recommendations accepted by the government on Wednesday said these workers should not be classified as employees, they stipulated platforms that exercise a significant level of management control over gig workers could be barred from 2024. Should provide some basic protection including CPF contribution and injury compensation. ,

Under the CPF measure, both platform workers and platform companies such as Grab, Gojek, Foodpanda and deliveroo Employees and employers will be required to contribute at the same rate. This is applicable if the worker is below 30 years of age in the first year of implementation, while it is on a voluntary basis for those aged 30 years and above.

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For example, workers aged 55 and under who are citizens of Singapore and permanent residents Need to contribute 20% of their salary In CPF while their employer contributes 17%.

CPF contributions are expected to increase over five years, unless major economic disruption warrants a longer time period.

Platform companies are also required to provide the same scope and level of work injury compensation that employees are eligible for.

Concerns about rising costs and competition

A Grab spokesperson said the current macroeconomic situation such as inflation “combined with potentially higher operating and implementation costs” necessitated a gradual implementation of the recommendations.

The spokesperson also said that with the challenge of being one of the first platforms to implement work injury compensation and income loss insurance, “the platforms will need to test the concept involving a smaller group of workers.”

“We will be guided by these considerations to ensure minimal impact on our partners’ earnings and consumer prices,” a Grab spokesperson said in emailed comments.

Gojek told CNBC that he too is “supportive” of the review and said the recommendations would build on his existing driver benefits program.

A Gojek spokesperson told CNBC via email, “In practice however, the CPF contribution will mean less earnings for our driver-partners. Implementing these recommendations will also affect costs to the platform and consumers, and driver- Partners may experience reduced demand for rides.” , Gojek also cited rising costs as one of the challenges.

Grab said the measures should be applied to all industry players for the sake of fairness.

A Grab spokesperson said, “Grab is of the view that street-hail taxis and third-party logistics companies should also be covered under the set of recommendations as they can tap gig workers for their business needs with similar workplace safety requirements.” We do.”

“Excluding them would result in an uneven playing field and could lead to price and market distortion. It could also encourage other industry players to fit their business models to the exclusion guideline, which would then render the recommendations ineffective.” can make.”

— CNBC’s JP Ong contributed to this report.

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