Firms looking for support in next Budget for upcoming CPF hikes for older workers

Some worry CPF rate hike for seniors may raise costs, but others see a solution to labour crunch

While some workers are happy that the new CPF rates will give them more savings in old age, others worry their disposable incomes will shrink. PHOTO: ST FILE
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Companies are gearing up for a rise in business costs with an upcoming hike in Central Provident Fund (CPF) contribution rates for older workers - with many looking to a support package in next year's Budget to ease the pain.

But some said the cost was likely to be manageable as the rise would be gradual, over 10 years or so from 2021, and older workers formed a smaller part of their workforce.

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A version of this article appeared in the print edition of The Straits Times on August 20, 2019, with the headline Firms looking for support in next Budget for upcoming CPF hikes for older workers. Subscribe