From flexibility to financial stability: Supporting platform workers’ success in 2025 and beyond

In today’s rapidly evolving economy, platform work has emerged as a key driver of flexibility and opportunity. Platform workers, from ride-hailing drivers to food delivery partners, play an essential role in keeping cities running efficiently.

While the festive season often brings increased demand for platform workers, resulting in higher earnings and an opportunity for them to bolster savings, it is also a time when expenses tend to spike. Equipping them with the knowledge and tools to manage income volatility, plan for the future, and navigating financial systems is crucial for their success and financial wellbeing.

Understanding the financial struggles of platform workers in Singapore

According to the Ministry of Manpower (MOM) in Singapore, there were about 70,500 platform workers in Singapore in 2023, representing around 3% of the workforce. These include taxi drivers, private-hire car drivers and delivery workers. While platform workers benefit from flexibility in deciding when to work, they face unique challenges such as uncertain earnings, traffic-related risks, and limited Central Provident Fund (CPF) savings for housing and retirement.

The introduction of the Platform Workers Bill 2024 aims to strengthen protection for platform workers to ensure they receive benefits comparable to traditional employees, including higher CPF contributions, work injury insurance, and union-like representation to provide better support. However, many platform workers continue to struggle with day-to-day financial challenges like unpredictable cash flows, difficulty accessing credit, and inadequate retirement planning.

Income volatility and fluctuating earnings make it challenging for platform workers to budget and plan for the future. Many freelancers prioritise immediate needs over long-term financial goals, leading to inadequate retirement planning. Irregular cash flow results in limited savings and increased reliance on credit during lean periods. Additionally, a lack of financial literacy prevents workers from making informed decisions about investing and saving. Without intervention, these issues can leave workers vulnerable to financial instability and shocks.

Empowering workers and bridging financial gaps through policy and education

Ensuring the financial wellbeing of platform workers is not just about individual stability, but also industry sustainability. The recent introduction of mandatory CPF contributions for platform workers under 30 is a step in the right direction, ensuring such workers have a safety net for housing and retirement.

Organisations reliant on platform workers have also been collaborating closely with stakeholders to offer resources such as financial literacy programmes and structured benefits. In November 2024, CMC Invest Singapore also hosted a financial literacy workshop with 60 Grab driver-partners in attendance. The session tackled key financial topics tailored to freelancers, including managing variable incomes and planning for long-term goals. Participants explored investment concepts such as compounding and diversification and received practical tips on balancing immediate cash flow needs with strategic goals.

Post-event feedback highlighted the programme’s positive impact. One Grab delivery-partner, Penny Ang, shared, “Before this session, I used to think that investing was complicated. CMC Invest’s workshop showed me how starting small and compounding can make a difference, and I now feel more confident about saving and investing. Since the session, I have also started researching low-risk investment options that fit my budget.”

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From an HR perspective, equipping platform workers with practical financial strategies is essential for empowering them to navigate their financial challenges. As attendees explored topics like risk tolerance and investment alignment, many left with a renewed sense of confidence in managing their finances. Initiatives like these are vital for creating a financially inclusive society. By addressing the unique challenges faced by platform workers and encouraging informed decision-making, stakeholders can help them thrive in an evolving economy. Small steps towards financial literacy can drive significant progress over time.

Making a start to healthy financial habits, for a stronger future

As we usher in the festive season, it is an opportune moment to address the financial wellbeing of platform workers. Adopting smart financial practices can help platform workers ensure that their hard work translates into lasting stability.

Cultivating disciplined financial habits is essential for platform workers. Key strategies include:

• Budgeting for stability: Tracking expenses and setting aside funds for both short-term needs and long-term goals.
• Building an emergency fund: Setting aside three to six months’ worth of expenses to buffer against income dips.
• Starting small with investments: Exploring low-risk investment options and harnessing the power of compounding over time.
• Continuous learning: Staying informed about financial tools and opportunities, such as CPF top-ups and diversified investments.

As we celebrate prosperity in the new year, let us also take meaningful strides towards achieving it. For platform workers and freelancers, the path to financial wellbeing begins with awareness, education, and action. Ultimately, the most rewarding investments are those made in securing a brighter future.

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