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New tripartite workgroup to study freelance workers’ concerns

SINGAPORE — With freelance work becoming more common, the Government will set up a tripartite workgroup to study the concerns faced by those in the industry, including the lack of income security and savings for retirement, Manpower Minister Lim Swee Say said in Parliament on Monday (March 6).

Grab Taxi's R&D centre at Cecil Street. TODAY file photo

Grab Taxi's R&D centre at Cecil Street. TODAY file photo

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SINGAPORE — With freelance work becoming more common, the Government will set up a tripartite workgroup to study the concerns faced by those in the industry, including the lack of income security and savings for retirement, Manpower Minister Lim Swee Say said in Parliament on Monday (March 6).

Amid the rise of the “gig economy”, an inaugural Ministry of Manpower (MOM) survey conducted last August to look into the freelance work landscape found that there are about 167,000 individuals who engaged in such work as their primary job last year. 

Based on data from the MOM’s annual comprehensive labour force surveys, the proportion of such freelancers among employed residents has held steady between 8 per cent and 10 per cent over the last decade. Including part-time freelancers who also hold other jobs, there are about 200,000 such workers in Singapore.

The survey also shows that among the freelancers, more than eight in 10 opt for such work out of preference. Private tutors, insurance agents and taxi drivers are among the occupations which freelancers dabbled in. Private-hire car drivers from ride-hailing platforms such as Grab and Uber form the biggest group of freelancers who use an online intermediary to find work.

Among the concerns flagged by freelancers are the lack of income security, including a loss of income from injuries sustained on the job or while attending training. They are also concerned about being ineligible for employee benefits, the lack of savings for retirement and housing, and not receiving full payment from customers in a timely manner. 

The adequate protection of freelance workers was an issue that had surfaced during the Budget debate last week. On Monday, it was brought up again by some Members of Parliament during the MOM’s Committee of Supply debate. 

If the gig economy is to prevail here, Ms Foo Mee Har (West Coast GRC) said the Government must take “urgent action” to rethink current labour laws to accord freelancers appropriate support. For example, she suggested putting in place Central Provident Fund (CPF) contribution obligations between parties who enter a contract for service. 

A marketplace could also be set up, providing gig workers access to pooled medical coverage and efficient job-matching, as well as allowing freelancers and employers to rate one another.

Mr Ong Teng Koon (Marsiling-Yew Tee GRC) called for the MOM to extend an option for employees to continue keeping the medical insurance policy provided by their firms at their own expense, even after they leave. 

Right now, even if employees were to fork out higher premiums, they may not be able to keep the policy. As workers shift into alternative work arrangements, this becomes a concern when medical conditions sustained in their current jobs become pre-existing conditions when they register for a new policy. This could prevent them from getting the policy at all, Mr Ong noted. 

Mr Alex Yam (Marsiling-Yew Tee GRC) said while being one’s own boss may seem an advantage, employers could also see great benefits for themselves in such an arrangement, which may result in a “race to the bottom and a shattering of our key social policy ideals”. Key pillars such as education and healthcare are inextricable from CPF and employment, he said. 

While a disruptive economy should be welcomed, “one that disrupts the very core social policy of our country and Singaporeans must be one we approach cautiously”, he noted.

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