Singapore must not delay raising CPF rates, retirement age: Labour MP
Singapore has to press on with its timetable to raise Central Provident Fund (CPF) contribution rates, as well as the retirement and re-employment ages, said labour MP Heng Chee How (Jalan Besar GRC).
These measures are important in helping older workers build their retirement adequacy, alongside other initiatives such as flexible work arrangements and skills renewal, he added yesterday.
Mr Heng, who is also the National Trades Union Congress (NTUC) deputy secretary-general and Senior Minister of State for Defence, said during the debate on the Budget: "The tripartite partners have taken to legislation to ensure older workers have the opportunity to work longer by raising the retirement and re-employment ages. After all, being employed is the best safety net, and companies need workers."
The tripartite partners of unions, employers and Government had agreed to raise the statutory retirement age from 62 to 65, and the re-employment age from 67 to 70 progressively over the coming decade. This will start with a new retirement age of 63 and re-employment age of 68 from July 2022.
CPF contribution rates for older workers were also set to increase from Jan 1 this year, but was deferred amid the pandemic to Jan 1 next year.
Mr Heng called for the raising of CPF contributions and retirement and re-employment ages to proceed without further delay, or risk adversely impacting retirement adequacy.
JOBS GROWTH INCENTIVE
The Government should also consider enhancing the Jobs Growth Incentive for workers above the age of 62 through added subsidies, suggested fellow labour MP and NTUC assistant secretary-general Desmond Choo (Tampines GRC).
"These workers are more prone to cyclical and structural changes. Furthermore, they are more likely to not be re-employed as companies seek to reduce costs. This will help companies to continue to hire older workers even during uncertain economic times," he said.
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