NTUC urges government to hike CPF contributions of older workers

To equalise rates with younger workers.

According to the National Trades Union Congress (NTUC), to help workers save more for retirement and meet healthcare expenditures, NTUC Secretary-General Lim Swee Say called on behalf of the Labour Movement for Central Provident Fund (CPF) rates to be enhanced on 10 February 2014.

In a media briefing held on 12 February 2014, hosted by NTUC President Diana Chia and NTUC Deputy Secretary-General (DSG) Heng Chee How, the Labour Movement urged the Government to look into increasing employer contribution to workers’ Medisave Account; strengthening Special Account savings for older workers who are aged 55 and above, and working towards alignment in the total CPF contribution rates of those who are in the age group of >50 to 55 years old, with those who are aged 50 and below.

In 2012, Deputy Prime Minister Tharman Shanmugaratnam made a public commitment to equalise the CPF contribution rates for workers who are aged above 50 to 55, with younger workers over the long term.

A 2.5 percentage point enhancement took effect that year, but “there is a gap of 3.5 percentage points between this group of above 50 to 55 years old, with those below 50 years old; and we hope that in the Budget this year, the Government can consider on a total contribution basis an improvement that is perhaps half of the gap,” DSG Heng said.