The Fixed Expense Deduction Amount (FEDA) used for calculation of CPF will be based on the mode of transport for the respective job(s) completed.
For example:
Example 1: Platform worker X uses a bicycle when working for platform operator A, and a car when working for platform operator B.
- Platform operator A will use the FEDA of 20% to compute the platform worker's net earnings for CPF contributions.
- Platform operator B will use the FEDA of 60% to compute the platform worker's net earnings for CPF contributions.
Example 2: Platform worker Y uses motorcycle from 1 to 15 Jan, and switches to bicycle from 16 to 31 Jan.
- For jobs completed on 1 to 15 Jan on motorcycle, the platform operator will use the FEDA of 35% to compute the platform worker's net earnings for CPF contributions.
- For jobs completed on 16 to 31 Jan on bicycle, the platform operator will use the FEDA of 20% to compute the platform worker's net earnings for CPF contributions.