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Raising older workers' CPF rates 'has gains'

It would add to costs but hopefully draw more back to work, say bosses

Published on Feb 12, 2014 8:22 AM
 
A cleaning lady makes her rounds at Woodlands MRT station on Feb 4, 2014. -- ST FILE PHOTO: MATTHIAS HO

A proposed increase in contributions to the Central Provident Fund (CPF) accounts of older workers would add to business costs, but also has its plus points, company bosses say.

They hope such a move would attract more older people back to the workforce, which would help alleviate the labour crunch.

The labour movement has called on the Government to raise the CPF rates of those aged 50 to 55 so that they are on a par with younger workers.

The CPF rate of these older workers is 32.5 per cent compared with 36 per cent for younger workers.

 
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Background story

USE PROGRESSIVE APPROACH

We hope that the Government will take a progressive approach, as this will give businesses time to adjust and plan.

- Mr Kurt Wee, president of the Association of Small and Medium Enterprises