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The planned increase in the contribution rates of the Central Provident Fund (CPF) should not be delayed any further as the government would have to “keep pace with the implementation,” the deputy general secretary of the National Trade Union Congress (NTUC ), Heng Chee How (February 4).
The increase in CPF contribution rates was initially scheduled for January 1 of this year, but was delayed until January 1 of next year due to the COVID-19 crisis.
Depending on the age of the worker, employers and workers will have to contribute 0.5 percentage points or one percentage point more for workers aged 55 to 70 years.
Speaking to reporters after meeting with mature workers at the National University Hospital, Mr. Heng noted that Singapore is in a good position to make the previous tripartite agreements on improvements in CPF contribution rates a reality as well. such as increasing the ages of retirement and re-employment.
“It is important that we keep pace with implementation because this was not done randomly or as a matter of negotiation.
“It was done for the purpose of allowing mature workers to continue to have the opportunity and option to make that contribution and continue saving for retirement. This is very important to the labor movement, ”he told The Straits Times.
Mr Heng, who is also a Member of Parliament for Jalan Besar GRC, pointed out that the “emergency situation” last year had led to the postponement of the increase in CPF contribution rates.
“It was because of the circuit breaker and the downsizing that were happening. We did not want a particular segment of workers to be singled out as increasingly expensive. But in general, we shouldn’t delay, ”he added.
Heng assured that the situation will be closely monitored for the rest of the decade to gauge the pace of such implementation.
He added that the timetable for increasing the ages of retirement and re-employment should remain unchanged.
The retirement age will be raised from 62 to 63 years and the re-employment age from 67 to 68 years, starting in July next year.
Noting that around 100 unionized companies have agreed to raise retirement or re-employment ages earlier than planned, Heng said older workers would have to continue to upgrade their skills and receive training.
“When working on company training, don’t forget your mature workers,” he said.
“COVID-19 makes it very clear … that the future will be much more digital. Therefore, confidence and comfort in using digital tools at a very basic level will become part of the common language that we all have to learn to use. And certainly older workers should be part of this learning process. “
