The PAP Seniors Group (PAP.SG), a group within the People’s Action Party that champion elderly causes, is proposing the Central Provident Fund (CPF) contribution rate for workers aged 55 and above should be increased to 37 per cent, according to media reports.
In its 21-page position paper, which will be submitted to the government later Tuesday (30 January), PAP.SG said increasing the CPF contribution rates for elderly workers would help boost their retirement adequacy.
The CPF contribution rate of 37 per cent is what workers below 55 are getting now, out of which employers contribute 17 per cent.
Those above 55 to 60 see a total CPF contribution rate of 26 per cent of wages, out of which employers contribute 13 per cent.
Workers above 60 to 65 receive a 16.5 per cent contribution rate, with employers providing 9 per cent. Those older than 65 now have a contribution rate of 12.5 per cent, with employers contributing 7.5 per cent.
Speaking at a press conference, Tan Chuan-Jin, chairman of the PAP.SG and also Speaker of Parliament, said the CPF rate recommendation will be tabled at the next Parliament sitting on 11 February.
The PAP.SG paper detailed recommendations on “creating the right conditions for seniors to enjoy their golden years by being active and productive”.
Flexible work arrangements should be introduced to encourage seniors to continue working if they want to, according to PAP.SG. The paper proposed employers be given more help to manage the costs of hiring seniors.
The paper comes weeks before Finance Minister Heng Swee Keat delivers the 2019 Budget statement on 18 February. Heng had earlier said the Budget will focus on areas such as healthcare, education, security and defence.
By 2030, one in four Singaporeans is expected to be 65 years old and above, up from one in seven currently.