Singapore’s previously announced labor protections for ride-hailing and on-demand delivery workers will kick in from January 1, 2025 while the city-state is getting closer to giving government grants to businesses using blockchain technology.
SG’s labor protections for platform workers to kick in from Jan 1 next year
Singapore’s previously announced labor protections for ride-hailing and on-demand delivery workers will kick in from January 1, 2025.
From that date, companies like Grab and Foodpanda will need to give these workers the same injury compensation as regular employees. They will also have to contribute to the Central Provident Fund (CPF) for these workers, and the workers will have to contribute more as well.
Additionally, companies will need to let ride-hailing and delivery workers, who numbered 70,500 in 2023, be represented by bodies similar to unions.
Separately, the government will enhance its previously announced CPF transition support scheme for low-wage platform workers to ease them into making higher CPF contributions.
Announced in Budget 2023, the Platform Workers CPF Transition Support (PCTS) scheme gives monthly cash payouts to low-wage platform workers to offset part of their increase in CPF contributions.
The scheme is being enhanced in two ways. First, the payouts will cover 100% of the increase in platform workers’ CPF Ordinary and Special Account contributions in 2025 – up from the previously announced offset of 75%.
The offset for 2026 will be increased to 75%, up from the previously announced 50%. The offsets will taper off from that year and cease in 2029.
Pilot project for SG to use blockchain to give out government grants to firms
Singapore is getting closer to giving government grants to businesses using blockchain technology. A pilot project used blockchain, which is like a digital diary, to record the distribution of these grants.
This project was started by the Singapore FinTech Association (SFA) and included DBS Bank and Enterprise Singapore (EnterpriseSG).
Grants were given to 27 companies, but the amount was not disclosed.
There were no details on when the grants were given, but the money helped companies participate in international trade fairs and overseas business missions under an EnterpriseSG scheme.
This scheme helps trade associations and chambers (TACs) cover some of the costs for these overseas missions and fairs.
The pilot project allows government agencies like EnterpriseSG and groups like SFA to set rules for giving out grants, including who receives them.
These rules are written in smart contracts, which are digital agreements stored on blockchain. They execute automatically when the set conditions are met.
The DBS blockchain used in the pilot can only be accessed by authorized users.
It is connected to the bank’s main payment system, so beneficiaries get the money directly in their bank accounts once the conditions are confirmed by the smart contracts.