Sunday, February 12, 2012

Employer CPF contributions for older workers to increase: PM

In some of my earlier posts, I commented that most people will not be able to hit their CPF minimum sum especially after paying for the costly HDB flat. 2 days ago, PM Lee commented that the CPF contribution rate for older workers will be increased gradually.

News Link:

This news came as no surprise to me. However to implement this well enough is a big challenge. As mentioned by PM Lee, "many older workers were able to keep their jobs because the cost of contributing to their CPF was lower and so they were cheaper to retain". I hope that these "older workers" will not end up losing their jobs as companies find them more expensive to retain. 

The Budget 2012 announcements will be out in a week's time. I suspect some changes on the CPF contribution rates will be introduced. Like always, it is likely to be a gradual increase of 3-5 years. We should also see new schemes/rebates introduced to help the general Singaporeans to cope with the high cost of living. After all, we have seen a high inflation rate of 5.2% in 2011.

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