By MoneyBees
Compare a full-time job with freelancing or delivery and ride-hail work on the same gross pay: CPF, MediSave, tax and paid leave, and the day rate you need to match the job.
Self-employed persons must pay MediSave, not full CPF, once their net trade income is above S$6,000 a year. In 2026 the rate is 4% to 10.5% depending on age and income, up to a maximum based on S$96,000 of net trade income. They can choose to top up the other CPF accounts.
Enough to replace employer CPF, paid leave and any benefits. On a S$5,000 a month job at 30, a freelancer with no costs needs to bill about S$71,400 a year, not S$60,000, to end with the same cash and CPF. That is about S$304 a day over 235 working days.
Platform workers born in or after 1995, or who opted in, pay 13% to 5.5% of net earnings by age, and the platform operator adds 7%, on monthly net earnings above S$750. Net earnings are gross less a deemed expense of 60% for a car, 35% for a motorcycle or PMD and 20% on foot or by bicycle.
No. Paid annual leave of 7 to 14 days, paid sick leave of 14 days (60 in hospital) and 11 paid public holidays are Employment Act rights for employees. A freelancer earns nothing on days they do not work.
As part of your personal income at the resident rates. You are taxed on net trade income: what you billed less allowable business expenses. Mandatory MediSave as a self-employed person gets full tax relief.
Only some groups can. Private hire and taxi drivers can claim 60% of gross driving income. Delivery workers can claim 20%, 35% or 60% by vehicle if gross delivery income is S$50,000 or less. Commission agents with total income of S$50,000 or less can claim 25%. Other freelancers claim their actual expenses.
Yes. IRAS gives relief on your own share of mandatory CPF, and the operator's share is not taxable. Workers who are not covered and did not opt in get the same relief as self-employed persons.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).