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Bosses weigh options to curb costs should CPF increase

If CPF rate for older workers goes up...

Published on Feb 20, 2014 8:02 AM

Company bosses are exploring ways to find savings in other parts of their operations, should the Central Provident Fund (CPF) rate for older workers go up.

They are looking at boosting productivity or lowering bonuses if the employer contribution rate rises, on continuing concerns about higher wage bills.

Last week, the National Trades Union Congress (NTUC) called on the Government to raise the CPF rates of those aged 50 to 55. The CPF rate of workers between 50 and 55 is 32.5 per cent, compared with 36 per cent for younger workers.

Business development manager at food manufacturer Ha Li Fa, Mr Randall Ang, said: "It will add on to costs especially in this situation of a full employment workforce that we are facing."

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