SNEF’s Budget wish list: More financial aid for older workers’ CPF hike, AI training and adoption
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From 2024, employers must contribute 0.5 per cent more of the wage of a worker aged from above 55 to 70 years.
PHOTO: ST FILE
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SINGAPORE – Most employers in Singapore are hoping for greater assistance in the 2024 Budget to cope with rising wages from an increase in CPF contributions for older workers
These are part of the Budget 2024 wish list submitted to the Government amid deepening geopolitical conflicts, growing uncertainties and a weaker economic outlook, the Singapore National Employers Federation (SNEF) said in a statement on Dec 14.
In October, nearly 240 of its 3,500 members responded to the survey it conducted.
Three in four anticipate higher wage costs in 2024 because of the hike in Central Provident Fund contributions for workers aged from above 55 to 70.
From 2024, employers must contribute 0.5 per cent more of the wage of a worker in that age group.
The goal of these gradual increases, which will continue until the target is hit in 2030, is to help older workers save more for their retirement.
In view of the 2024 hike, SNEF is proposing that the CPF Transition Offset be extended, while transitional support is provided for the higher CPF monthly salary ceiling.
SNEF executive director Sim Gim Guan said: “These measures will help employers cope with the increase in wage costs, even as the increased CPF contributions enhance the amount senior workers need to save for retirement.”
Meanwhile, more than 86 per cent of the respondents want more support when they let their staff take time off to attend courses that, in turn, will allow them to acquire skills in their bid to stay relevant in a rapidly evolving business environment.
Employers renewed their call for more funding, both for course fees, and to defray some of the manpower costs incurred when employees are away attending courses.
In particular, employers recognise the importance of AI in improving productivity, while ensuring that Singapore maintains its global competitiveness, Mr Sim said.
More than a third of those polled felt additional support is needed in this area, including better subsidies for AI-related courses and targeted grants that will encourage more businesses to adopt AI.
“Not only will this raise the productivity of these companies, but it will also allow them to transform, innovate and position themselves well for the future,” noted Mr Sim.
Among the other suggestions the survey surfaced were ways to ease wage cost pressures, support the learning of new capabilities that boost productivity, and enabling knowledge transfer from foreign workers to their local counterparts.
“Ultimately, these measures – while aligned with national priorities of forging a strong social compact, building a resilient nation and developing a competitive and sustainable economy – also translate into good jobs for everyone,” Mr Sim added.
Thanking members for their feedback that had contributed significantly to shaping the Budget 2024 proposal, SNEF president Robert Yap said: “SNEF appreciates the strong support from the Government for employers... (and) hope that Budget 2024 will continue to include measures to help employers thrive.”
