816 views

Grab will have sufficient time to prepare for benefits of gig workers

The government approved recommendations to provide insurance to workers.

When the Ministry of Manpower (MOM) approved the 12 recommendations to enhance working conditions of platform workers, companies like Grab, which has gig workers, will be entrusted to provide benefits of insurance, retirement and other benefits.

In a report, CGS-CIMB discussed such a move that will be a neutral effect for companies like Grab. It said Grab is prepared to implement the “impending changes, and the potential impact of this development has already been baked into Grab’s steady-state margin guidance.”

“The recommendations are in line with Grab’s commentaries during its Investor Day that ‘potential implementation of mandatory retirement benefits and insurance benefits will be carried out in a gradual and careful manner, at a level playing field for all platform players, so as to not damage the health of the marketplace,’” said CGS-CIMB.

Some of the key items of the recommendations are providing “insurance to gig workers to same level as employees in other sectors are covered under the Work Injury Compensation Act, the phased implementation of CPF contributions (over a 5-year period) for gig workers (compulsory for workers aged below 30 as of the first year of implementation, but on an opt-in basis for older workers), and stronger representation of gig workers.”

MOM said the recommendations will take effect gradually from the latter part of 2024 at the earliest, depending on the economic situation.

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!