Grab has shown its commitment to its drivers by becoming the first ride-hailing company to provide its drivers with Medisave contributions.
Currently, all GrabCar drivers are considered as independent contractors and not employees of the company. Therefore, Grab is not obliged to contribute to their CPF.
How much top-up
Under the new Medisave initiative, GrabCar drivers who contribute to their Medisave accounts will get up to $100 a month from Grab to add to their account when they complete at least 80 trips a week.
Selected drivers under its Platinum Partner Programme are eligible for a higher Medisave contribution cap of $200.
It is widely expected that drivers are required to meet performance criteria such as high level of acceptance rate, low cancellation rate and maintain driver’s ratings.
Support from Industry Players
Mr. Lim Kell Jay, Head of Grab Singapore – “We believe the focus Grab places on helping our drivers… have peace of mind with better care for their medical needs, will make driving a long-term sustainable option for more in Singapore.”
The initiative is a partnership with the National Private Hire Vehicles Association (NPHVA).
The objective is to allow drivers to concentrate on driving and build a saving nest for their medical needs. NPHVA hopes that the Medisave top-up initiative will attract more drivers to join the industry. It also encourage other companies and stakeholders in the industry, including car leasing companies and apps-based platforms to play a bigger part and provide support to private hire vehicle drivers’s CPF savings.
Grab 1 – Uber 0
Grab has scored the first goal since the announcement of the Private-car Driver Vocational Licence.
Grab has been at the forefront of the ride-hailing industry in Singapore and is steadfast in showing their commitment towards their workers.
It has put Uber under pressure and we should be expecting a matching response from Uber shortly.
Cost of the Driver’s Medisave top-up initiative
The top-up of GrabCar driver’s Medisave presents a significant increase in driver’s cost. If all 10,000 drivers meets the requirement of the top-up, it presents a additional cost of $1million per month for Grab.
Someone will have to pick up the tab on the additional cost. Would the cost be passed to the Riders or the Drivers got to work harder for it? We would love to hear from you in the comments.
We are following this story closely. Follow us to be updated with the latest detail of the initiative.