Stomper: Why many taxi drivers are reluctant to opt in for CPF contributions
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Retirement savings may be a national priority, but for some workers, the immediate concern is daily cash flow.
About three quarters of older platform workers have opted out of making voluntary CPF contributions under the new opt-in framework, according to recent reports.
While CPF opt-in schemes promise greater long-term security, some believe practical implementation issues have made participation less straightforward than it appears.
One taxi driver cited how the system works in practice.
Stomper Dave shared that on Feb 4 at about 5.12pm, he accepted a Gojek booking from Cecil Street to Canberra Road. The passenger was picked up at 5.18pm and dropped off at 6.08pm.
"To reach the destination in a timely manner, I used the Central Expressway (CTE) and the Seletar Expressway (SLE), passing through several ERP gantries during peak hour," the 49-year-old cabby said.
The total fare, including ERP charges, came up to $49.20.
Under the CPF opt-in scheme, drivers contribute based on their earnings from each trip. However, the driver said the Gojek receipt does not separately itemise ERP charges.
"As such, drivers are unable to deduct the ERP amount before computing CPF contributions," Dave said.
"In contrast, platforms such as Grab and Ryde clearly itemise ERP charges separately.
"This allows drivers to compute CPF contributions based only on actual earnings, excluding reimbursed expenses. ERP fees are not income, they are pass-through costs paid on behalf of passengers."
According to the Stomper, contributing CPF on reimbursed expenses can further reduce take-home pay.
"For many taxi drivers already facing rising fuel costs, rental fees, and fluctuating demand, this creates additional financial strain," he said.
"If CPF participation is to be encouraged, there must first be clear and consistent guidelines across all platforms.
"Why, after the introduction of the opt-in scheme, is there still no standardised system requiring companies to itemise reimbursable charges separately?
"Until such issues are addressed fairly and transparently, it is understandable why many drivers remain reluctant to opt in."
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