Platform Worker Legislation: How Singapore is Tackling the Gig Economy Dilemma

Starting 1 January 2025, Singapore’s platform workers in food delivery, courier services, and ride-hailing will benefit from more comprehensive social protection covering workplace injuries, retirement, healthcare, and housing. They will also be able to form ‘Platform Work Associations’ to bolster their collective bargaining power. This change stems from the Platform Workers Bill, passed by the Singapore Parliament on 10 September 2024.

In recent months, incidents such as the sudden death of a top-performing delivery rider in Hangzhou, and another rider kneeling before a security guard, have further focused public attention on the precarious conditions facing platform workers, particularly food delivery riders. Over the past decade, the platform economy has expanded rapidly across the globe, becoming deeply woven into urban daily life in China. Yet this growth has been accompanied by a troubling reality for those who power it: low wages, minimal benefits, and a stark lack of labour protections. In this context, Singapore’s Platform Workers Bill is widely regarded as a landmark measure, offering a valuable reference for China and other nations seeking to address labour rights in the gig economy.

I. Starting with a Short Film

The rollout of Singapore’s Platform Workers Bill took three years, involving multiple rounds of deliberation and consultation with various stakeholders. Yet this journey began with a short video independently produced by a university student working part-time as a delivery rider.

In late August 2021, then-Prime Minister Lee Hsien Loong screened this three-minute film at the annual National Day Rally. It is titled Kejar, which means “chase” in Malay.

The film follows a young rider’s day spent chasing the algorithm, hurrying from one delivery to the next. Along the way, he encounters a series of misfortunes: a dog startles him, causing the food to fall; his delivery box lacks sufficient capacity; and he pauses to help a fellow rider mend a motorbike. By day’s end, he misses his target of 30 orders by just one, forfeiting a S$90 bonus (approximately ¥488).

● In the short film Kejar, a young rider voluntarily helps a fellow rider repair a motorcycle that has broken down by the roadside. Image source: screenshot from the video.

Lee Hsien Loong used the short film as an example to voice his concern for low-income groups, represented by platform workers. “They work for platforms such as Foodpanda, GrabFood and Deliveroo. We always see them delivering food for us day and night, especially during the pandemic. It is hard work, and the majority do not earn much.”

This was during the height of the delta variant outbreak. Due to the pandemic, Singapore’s economy experienced its sharpest contraction since independence in 1965, and unemployment reached its highest level in a decade.

The National Day Rally is one of Singapore’s annual celebrations marking National Day. Since the first anniversary of independence, the Prime Minister has delivered an annual address discussing national challenges, economic conditions, future goals and strategic planning, drawing comparisons to the United States’ State of the Union address. The 2020 rally was cancelled due to the pandemic. A year later, addressing a series of ongoing challenges, Lee highlighted low-income workers and outlined measures to boost their earnings—emphasising that beyond emergency relief during the pandemic, they require systemic support to achieve sustainable income growth.

He specifically pointed out that riders are, in substance, employees. However, because they lack formal employment contracts with the platforms, they are deprived of basic workplace protections afforded to most workers, such as work injury compensation, the right to unionise, and employer contributions to the Central Provident Fund (CPF). Meanwhile, as more people in Singapore take on such work, “the Ministry of Manpower is conducting research and will consult stakeholders. We must address these issues and provide a more secure future for these workers.”

Prior to the pandemic, Singapore’s food delivery sector did not grow rapidly, despite the convenience of dining out and high labour costs. However, data from the analytics platform Statista shows that total revenue for food delivery and grocery express services in Singapore surged by 68.8% and 40.9% respectively in 2020, reaching record highs.

A consumer survey published by Deliveroo in October 2022 revealed that the pandemic had led Singaporeans to fully embrace food delivery services. 60% of respondents said they now use delivery services more frequently than before the pandemic, while 70% reported using them at least once a week.

● Food delivery riders in Singapore during the pandemic. Data shows that the average monthly spending on delivery services by Singaporeans rose from S$67.54 (approximately RMB 365.99) in 2019 to S$108 (approximately RMB 585) in 2022. Image source: CNA (Channel News Asia).

Singapore hosts over a dozen ride-hailing and food delivery platforms, employing more than 70,000 workers. This figure briefly surpassed 80,000 in 2022 before receding, representing roughly 3% of the local workforce. More than half of these platform workers are over 50 and lack higher education. In 2021, their median monthly income stood at S$1,500 (approximately RMB 8,128), compared with a national median monthly income of around S$5,200 (approximately RMB 28,178).

In 2022, the Institute of Policy Studies at the National University of Singapore surveyed nearly 1,000 platform workers and found that 94% reported experiencing significant financial pressure, while 84% worried they would be unable to save enough for retirement.

Between 2021 and 2022, five food and parcel delivery platform workers died in traffic accidents. Of the 12 platform workers interviewed by Channel News Asia in July 2022, only one said they had never been involved in an accident or a near miss. Major platforms, including GrabFood, Foodpanda and Deliveroo, provide insurance for riders but do not offer other basic benefits.

Mohammad Ruzhael bin Marwazi, director of Kejar, was just 20 in 2021. A second-year film production student at ITE College Central, he registered as a delivery rider on his 18th birthday to help support his family, just like his older brother. Likewise, many of his friends who participated in the film’s production and acting also had prior experience delivering food.

Speaking to The Straits Times after receiving an award, Marwazi noted that the pandemic had shifted public perception of delivery riders, casting them as “heroes serving the community”. “Yet many are unaware of the difficulties they face,” he said. “I hope to bring these challenges to light and use the film as a catalyst for change.”

● A GrabFood delivery rider on a run in Singapore. Image source: The Straits Times.
However, platform operators have warned that any increase in labour costs would be passed on to consumers. This could dampen demand for delivery services, ultimately leaving platform workers to shoulder the losses.

During the 2021 National Day Rally, Lee Hsien Loong emphasised that boosting low-wage workers’ earnings would require a collective effort: workers upgrading their skills, support from the government and employers, and contributions from consumers. “As consumers, we too must do our share, and be willing to pay a little more for the services we enjoy,” he said.

II. Towards a More Secure Future

Following the National Day Rally in late August 2021, Singapore’s Minister for Manpower, Josephine Teo, announced the establishment of the Advisory Committee on Platform Workers, comprising 15 representatives from the government, trade unions, industry, and academia. Two weeks later, the committee convened for its inaugural meeting to establish its key priorities: retirement and housing security, financial protection in the event of workplace injuries, and collective bargaining rights for platform workers.

Under Singapore’s current legislation, between 8% and 10.5% of a platform worker’s earnings are automatically channelled into their MediSave accounts. Meanwhile, platforms bear no obligation to contribute towards pensions, healthcare, or housing funds on their behalf.

Given the nature of their work, platform workers spend extensive hours on the road, significantly elevating their risk of accidents. Yet, should an injury occur, they are left without adequate financial safeguards to maintain their livelihoods.

Furthermore, as platform workers are not classified as employees, they are deprived of the right to form trade unions, leaving them without robust mechanisms for collective bargaining or resolving disputes.

The committee subsequently opened a public consultation and engaged directly with consumers, platform workers, and platform operators. Following the committee’s recommendation, August 2022 saw the establishment of a Tripartite Working Group on Platform Workers, bringing together government officials, representatives from the Singapore National Employers Federation, platform companies, and trade unions.

‘Tripartism’ has evolved into a distinctive labour-management framework under the People’s Action Party’s prolonged stewardship. Prior to the early 1960s, Singapore was plagued by political instability, soaring unemployment, frequent strikes, and social unrest, characterised by deeply adversarial labour relations. In 1972, years after independence, Singapore established its first tripartite institution—the National Wages Council (NWC). By convening government, employers, and workers, the council sets wage guidelines to ensure orderly pay growth and avert industrial disputes that could derail economic development.

Once convened, the working group facilitated dialogue among stakeholders and, by the following year, tabled a suite of legislative proposals. These covered the accreditation process for worker representative bodies, the scope of negotiations, the drafting of formal agreements, and mechanisms for resolving impasses. Earlier this year, the Ministry of Manpower formally endorsed these recommendations.

III. The Platform Workers Act Passes

On 10 September, the Singapore Parliament formally passed the Platform Workers Act, making Singapore one of the first countries in the world to introduce legislation specifically designed to protect platform workers.

The Act recognises that platforms exercise a degree of control over workers, creating a working relationship that differs from both traditional employment and self-employment. Consequently, it introduces a new statutory category for platform workers alongside existing classifications.

● Contents of Singapore’s Platform Workers Act. Source: Singapore Parliament website

The Bill mandates that platform workers born on or after 1 January 1995 must contribute to the Central Provident Fund (CPF). Participation will remain voluntary for those born before this date, as they may already have their own housing and retirement plans in place. The CPF contribution rates for both workers and employers will be introduced gradually, eventually reaching the same levels as those for conventional employees and employers. The government will also introduce a transitional support scheme for platform workers’ CPF contributions, designed to partially offset the reduction in take-home pay resulting from these deductions.

In the meantime, platforms will be required to provide workers with work injury compensation insurance on par with that for standard employees, and both parties will share a responsibility to prevent accidents. Should a worker sustain an injury on the job, they will be entitled to claim compensation—covering the reimbursement of medical costs, compensation for lost earnings during sick leave, and a lump sum payout in the event of disability or death. If a rider delivers for multiple platforms simultaneously, those platforms will bear joint liability for any compensation claims.

To safeguard the health and safety of platform workers, the Ministry of Manpower and the Workplace Safety and Health Council are collaborating with the industry to jointly draft a baseline code of safe operating practices, which will be opened for public consultation in September.

The legislation also mandates the establishment of platform worker associations to negotiate with platforms on behalf of their members. The Ministry of Manpower will appoint officials to standardise and oversee the activities of these associations.

The Bill notes that the Platform Workers Bill is designed to reinforce the social compact, under which every stakeholder—platform operators, workers, and consumers alike—plays a part in advancing protections for platform workers.

Singapore’s new Prime Minister, Lawrence Wong, wrote on Facebook that day: “This outcome is a testament to our robust tripartite framework. Together, we have crafted a scheme that benefits both workers and businesses, ensuring fair treatment while preserving the flexibility that platform work affords. This marks a significant step forward in our ongoing efforts to strengthen the social compact.”

● Lawrence Wong commented on the bill on social media. Image source: Screenshot from social media

The value of Singapore’s Platform Workers Act lies in its attempt to address labour protection challenges within the platform economy through precise regulatory frameworks. It tackles issues such as defining the employment relationship between platforms and workers, preventing platforms from passing costs onto workers, determining the scope of compensation for work-related injuries, and strengthening workers’ voice on algorithmic transparency.

However, Singapore’s legislation cannot simply be seen as a ready-made answer for China. For example, Hoo Choon Tien, Senior Minister of State for Manpower in Singapore, believes that ensuring consumers and workers can switch platforms will drive market competition that checks platforms’ tendency to offload costs. In China, though, food delivery platforms are tending towards monopoly, so such a balancing mechanism may not work. Another factor is the high mobility of platform workers in China. When facing serious illness, most choose to return to their registered hometowns for treatment, which makes them reluctant to contribute to medical insurance in major cities.

● In the film *Another Day Full of Hope*, a delivery rider lapses into a coma after a car accident and ultimately declines treatment because he cannot afford the exorbitant costs of an ICU stay. This social realist film, which sheds light on the realities of delivery riders, algorithms, and platforms, has struck a strong chord with audiences. It is currently streaming on major platforms such as iQIYI, Tencent Video, Youku, and Migu, and we highly recommend it. Image source: Official film poster

If we are to advance labour protections for platform workers worldwide in a meaningful way, numerous such nuances must still be weighed against the specific social contexts of China and other nations. Yet there is no doubt that, as one of the first countries globally to enact dedicated legal safeguards for platform workers, Singapore’s *Platform Workers Act* provides invaluable guidance and insight.

Foodthink Author

Xiao Cao

Politics and Economics Journalist

 

 

 

 

Editor: Yu Yang