Got CPF?" Yes - and why it's only uPsides for you

CPF Contributions for Platform Workers

Today, the CPF programme for delivery freelancers has rolled out starting 01 Jan 2025. Freelancing on uParcel means we will be covered by CPF Board’s scheme.

If you still prefer to take full nett prices, you can take on fixed routes as a Contracted Service Partner instead (scroll to final paragraph).

Here’s why there’re only uPsides to platforms that contribute CPF for freelancing delivery agents:

 

1. You earn more - Topped up by uParcel & clients

• uParcel and clients has to pay you more to add to your retirement.

• Our platform will be contributing on top of your original price per job.

 

2. You earn more by doing nothing extra - Higher CPF interest rates

• If you spend most or put in a normal bank, there’s almost no, alright 0.5% p.a, interests earned.

• Now, a portion is administratively parked for you into your CPF accounts. Those money is still yours!

• CPF saving interest rates are sweeter. Your delivery income in your Ordinary Account will now give you 2.5% p.a, and 4.0% p.a in Medisave and Special Accounts

 

3. uParcel is buying your work insurance

• Yes, you now have coverage while you deliver for uParcel

• Work Injury Compensation (WIC) covers you for medical and income loss in event of an accident during pick up or drop off. (Read more at MOM website)

 

4. Easier to secure loans and credit cards

• Having CPF records is the most reliable assessment to pass your applications

 

5. Will you fall sick? Do you want to finish payment of your home? Will you retire and can’t work one day?

• Yes. So you need your CPF savings

 

If you still want to manage your service prices at a nett rate, you can sign up to be uParcel’s Contracted Service Partner. This means you own a delivery route (e.g Jurong / Pandan Road pick up) and will reserve and secure these jobs. Interested agents can WhatsApp to +65 9232 6645 or write in to marketing@uparcel.sg to enquire or apply.

 

To help you understand more about the CPF contributions for freelance delivery, here are some resources:

 

i.  CPF Calculator for Platform Workers (go there)

ii. Am I opted-in directly? How much do I save into my CPF? (read)

iii. Saving As A Platform Worker With CPF Contributions (read)

 

More FAQ

1. What are the changes to CPF contributions for platform workers?

Starting from 1 January 2025, platform operators (such as uParcel) are required to deduct CPF contributions from platform workers' earnings and submit them to the CPF Board monthly.

For workers born on or after 1 January 1995, CPF contribution is compulsory and the rates will gradually align with those of employees by 2029.

Workers born before 1 January 1995 can opt in to receive increased CPF contributions.

 

2. How will CPF contributions benefit platform workers?

CPF contributions enhance financial security by building savings for housing, retirement, and healthcare needs. Contributions to the Ordinary Account can be used for home purchases, the Special Account for retirement, and the MediSave Account for healthcare expenses.

 

3. How can platform workers born before 1 January 1995 opt in for increased CPF contributions?

Workers born before 1995 can opt in to contribute to all three CPF accounts (Ordinary, Special, MediSave) by submitting an opt-in form. There is no deadline, but the decision is irreversible. Opting in allows workers to receive matching contributions from platform operators (such as uParcel).

However, please note that once you have opted-in to the CPF contribution, you will not be allowed to opt out or reverse this decision according to CPF's regulation.

 

4. Will opting in affect my take-home pay?

While opting in increases CPF contributions, which reduces immediate take-home pay, it enhances long-term financial security. The Platform Workers CPF Transition Support (PCTS scheme) will help offset the reduction in take-home pay for eligible lower-income workers during the transition period. For more information, please visit Central Provident Fund Board.

However, please note that once you have opted-in to the CPF contribution, you will not be allowed to opt out or reverse this decision according to CPF's regulation.

 

5. How is the CPF contribution calculated?

Your CPF contribution will be computed based on gross earnings minus the Fixed Expense Deduction Amount (FEDA). The FEDA varies according to the mode of transportation you use for the job.

Apply the respective FEDA to your gross earnings to compute your net earnings.

• Cars, vans, lorries, trucks 60%
• Motorcycles, power-assisted bicycles, motorised personal mobility devices 35%
• Bicycles, on foot (including use of public transport) 20%

Net Earnings = Gross Earnings – Fixed Expense Deduction Amount (FEDA)

CPF contribution amount = Net Earnings x CPF contribution Rate

Your CPF contribution rate is based on your net earnings, age group and opt-in status.

You may refer to this link for the CPF contribution table.

 

6. How can I calculate my CPF contributions as a platform worker?

The CPF Board provides a Platform Worker Contribution Calculator to help workers understand their total CPF contributions and allocation into various accounts. This tool is available on the CPF website.

You can also learn more about CPF contributions for platform workers, including how the changes will be implemented over the next five years by visiting the CPF platform worker page.

 

7. What happens if I don't opt in for increased CPF contributions?

Platform workers born before 1 January 1995 who do not opt in will continue contributing only to their MediSave Account through deductions by platform operators (such as uParcel). They will not receive additional contributions to their Ordinary and Special Accounts from uParcel.

 

8. Are there any deadlines for opting in to increased CPF contributions?

There is no deadline for opting in; platform workers can choose to opt in at any time. However, once the decision is made, it cannot be reversed.

 

9. Where can I see the total CPF contribution breakdown?

Under your agent app > statements, you will be able to download your monthly statement, and it will show the breakdown of all your earnings, and also the CPF contributable to your CPF account.

 

10. Where can I find more information about CPF contributions as a platform worker?

For detailed information, visit the CPF Board's official page on CPF contributions for platform workers.

 

11. How to verify that my CPF contributions as a platform worker is correct?

First, Look out for the CPF Contribution Alert. Get notified when your CPF contributions are credited in your CPF accounts. You are encouraged to keep your contact details updated to receive the alert.

2nd, Check the statement of earnings by downloading it from your uParcel app. The statement will show the total amount of CPF contribution from both you (platform worker) and uParcel (platform operator).

If there's any discrepancies between the amount on the statement and your CPF credited amount, please email to express@uparcel.sg and we will do a check. For CPF contributions paid in error, you will need to submit a request for adjustment or refund immediately, and no later than one year from the date of payment.

You may also use the CPF calculator to cross check the amount of CPF that should be deducted here.

 

12. How to check for my current opt-in status as a platform worker ?

You may refer to the CPF website to check for your current status.

 

13. Why is there a deduct for CPF contribution even though I am Opt-out status from the scheme?

Medisave contribution is still mandatory and rates will be applied accordingly. You may refer to this table for the Medisave rates.

 

14. Is uParcel considered as a Platform Operator under the Platform Workers Act ?

Yes. uParcel is a platform operator under the Platform Workers Act.