SINGAPORE - There were worries that the higher Central Provident Fund (CPF) contribution rates for older workers, meant to start next year, would be cancelled amid economic headwinds.
But the subsidies announced in the Budget last week to offset half of the increases for employers show that what the Government has promised will be done, said Senior Minister of State for Defence Heng Chee How on Wednesday (Feb 26).
He noted during the debate on the Budget statement that there were also new schemes and enhancements to existing schemes to incentivise employers to hire mature Singaporeans.
"By the sheer number of targeted subsidies and incentives aimed at sustaining and spurring continued hiring of older Singaporean workers in this Budget, the Government's care for and commitment to our older workers is crystal clear. And our older workers appreciate this," he said.
Mr Heng was among labour MPs who spoke about the importance of job security for various groups of Singaporeans - such as mid-career professionals, managers, executives and technicians (PMETs), low-wage workers and freelancers.
They also lauded the measures to support businesses and workers during the economic uncertainty resulting from global trends and the Covid-19 outbreak.
Bosses will receive a CPF transition offset to cover half of the increase in their contribution rates for older workers next year, up to the CPF monthly salary ceiling of $6,000. They will be contributing 0.5 percentage point or one percentage point more for workers aged 55 to 70 next year, based on the worker's age.
CPF contribution rates for those aged 55 to 70 are to be raised gradually over this decade until those aged 60 and below enjoy the full CPF rates. The retirement age and re-employment age ceiling will also be raised gradually from 62 and 67 now, to 65 and 70 by 2030.
Nominated MP Arasu Duraisamy said that some companies are reluctant to extend the retirement age for certain groups of senior workers: general administrative staff who are deemed easily replaceable with robotic process automation or younger employees, and those in roles where physical fitness is needed.
He said employers should intervene early through customised career planning for each employee. Companies can consider reskilling workers in their 40s so they can have better job security and progression when they retire and seek re-employment in the company.
"I urge employers to not view these senior workers as a cost burden but as valuable assets with tacit knowledge, as these senior employees will be the ones mentoring the next generation of workers," he said.
Mr Melvin Yong (Tanjong Pagar GRC) said that mid-career PMETs are especially vulnerable to lacking employment and employability, and that training should be made more relevant, affordable and physically closer to them.
He said that the National Trades Union Congress will set up on-demand mobile centres for PMEs to offer career development workshops and job preparation courses closer to the heartlands. The UPME Centre is now located in the NTUC Members' Hub in One Marina Boulevard.
For a start, the mobile centres will be at Cairnhill, Tanglin and Pek Kio community centres. Services will be extended to all 11 community centres in the Tanjong Pagar GRC, said Mr Yong, adding that he hopes the Government can open all community centres and residents' committee centres for this purpose.
NTUC will also roll out free workshops on project management fundamentals, digital marketing and financial planning, he said.
"Many PMETs find themselves 'sandwiched' financially, as they have both young children and elderly parents to care for. It is important that we help them navigate through this period and emerge with sound financial footing, so that they can achieve their desired quality of life during retirement," he said.
Mr Patrick Tay (West Coast GRC) suggested providing the SkillsFuture Credit top-ups earlier than October, so that workers can use this period of downtime amid the coronavirus outbreak to go for training. All Singaporeans aged 25 and up will receive $500, while those aged 40 to 60 will receive an additional $500 which can be used on about 200 career transition programmes offered by continuing education and training centres.
Among other things, Mr Tay suggested expanding the list of eligible programmes beyond the 200 to include those recognised under the industry transformation maps skills frameworks as well as suitable Government and NTUC-run courses and training programmes and those of company training committees.
As for vulnerable workers, Mr Zainal Sapari (Pasir Ris-Punggol GRC) suggested providing data on wage benchmarks by occupation and sector so that people can identify a fair wage and make more informed decisions about their careers. This could start off in the food and beverage industry, which employs about 180,000 people in diverse roles.
He also suggested educating people about fair employment contracts, starting in tertiary institutions. There could be a "cooling off period" of up to five working days for workers to rescind contracts without penalty. Companies found or reported to have unfair clauses in their employment contracts could be placed on a watchlist and be subject to administrative penalties.
