The CPF contribution is calculated based on platform workers’ net earnings (after fixed expense deduction amount) and the
contribution rate applicable to their age, earnings and opt-in status.
Illustration
Step 1: Determine a platform worker’s gross earnings: $3,000
Step 2: Apply the Fixed Expense Deduction Amount (FEDA): 60% expense for cars
Step 3: Compute the net earnings: $3,000 x (1-60%) = $1,200