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PM Lee said Employers' contributions to older workers' CPF to be raised - 08Feb2012

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SINGAPORE: Prime Minister Lee Hsien Loong said employers' contribution rates to the Central Provident Fund for older workers have to go up, but added that any increases will have to be gradual. Mr Lee revealed this at a pre-Budget dialogue with unionists last week. Currently, CPF contribution rates are cut when workers reach 50 years old, and cut further when they turn 65. The labour movement, NTUC, has been calling for this to be reviewed. This too, comes at a time when Singaporeans are being encouraged to work beyond their retirement. Mr Lee said the government is discussing the matter with unions and employers. But cost is a consideration. He noted for instance, that a larger proportion of older workers kept their jobs during the recession, because their CPF was lower, and so they were cheaper to retain. The government's concern here, is that once older workers lose their jobs, it's much harder for them to get back to work. Separately, Mr Lee also told unionists the government will spend more on social schemes. And that the poor, the elderly, and those from broken families will get the most attention. Mr Lee said help has to be given carefully, to avoid the impression that the government can meet all requests for help. It's also a matter of ensuring Singapore can afford it and that the government can balance its budget. He was confident cost will not be an issue for the next five years, but said as society ages, the government will have to think of more ways to raise revenue. www.channelnewsasia.com/stories/singaporelocalnews/view/1181771/1/.html
Tags: Singapore prime minister lee hsien loong PM LHL CPF contribution adjustment 154media 154thmedia mediaNTUC