S
suicidalpap
Guest
Govt to consult stakeholders on CPF for older workers: Tharman
Deputy Prime Minister Tharman Shanmugaratnam said the government will consult stakeholders and understand the ground feel when it looks into the labour movement's decision to review the Central Provident Fund (CPF) contribution rate of older workers.
He said the government will monitor how the wage system changes over time and whether it will move away from a seniority-based structure to one that's more performance-based.
For Singaporean workers over 50, the CPF contribution rate is cut by six percentage points to 30 per cent.
And it drops further to 11.5 per cent once you turn 65, due to a lower contribution from both worker and employer.
With unionists suggesting a review of this policy, Mr Tharman said careful consideration is needed, to ensure older workers are able to find work and stay in the job.
Mr Tharman said: "This is something we have to study over time, but let's not make changes in haste. Let's study this carefully, consult employers, consult the unions, find out the realities on the ground. And do the right thing for our older workers. That's what we're concerned about."
Speaking to reporters on the sidelines of a school event, Mr Tharman said there are other forms of support for older low wage workers, like the Special Employment Credit.
"It is a temporary scheme because we're trying it out, where the government pays for a part of the CPF contribution of the employer. Still see what we can do going forward, beyond that initial experiment."
Costing the government about S$100 million, the one-off credit was introduced as part of the 2011 Budget and is paid out over three years till 2013.
Turning to Singapore's economic growth, Mr Tharman said the slowdown in the second quarter reflects financial woes in the European Union and the United States.
He said a repeat of the Lehman Brothers crisis is unlikely, but some mini-shocks can be expected that will affect investor confidence.
Mr Tharman said: "Fortunately our fundamentals are strong, in the labour market, in terms of investment flow into Singapore. But we cannot be unaffected by what's going on in the rest of the world and we'll see some sluggishness in the external environment for some time to come."
Mr Tharman added that strong domestic demand in Asia will continue to be a major driver of growth.
Deputy Prime Minister Tharman Shanmugaratnam said the government will consult stakeholders and understand the ground feel when it looks into the labour movement's decision to review the Central Provident Fund (CPF) contribution rate of older workers.
He said the government will monitor how the wage system changes over time and whether it will move away from a seniority-based structure to one that's more performance-based.
For Singaporean workers over 50, the CPF contribution rate is cut by six percentage points to 30 per cent.
And it drops further to 11.5 per cent once you turn 65, due to a lower contribution from both worker and employer.
With unionists suggesting a review of this policy, Mr Tharman said careful consideration is needed, to ensure older workers are able to find work and stay in the job.
Mr Tharman said: "This is something we have to study over time, but let's not make changes in haste. Let's study this carefully, consult employers, consult the unions, find out the realities on the ground. And do the right thing for our older workers. That's what we're concerned about."
Speaking to reporters on the sidelines of a school event, Mr Tharman said there are other forms of support for older low wage workers, like the Special Employment Credit.
"It is a temporary scheme because we're trying it out, where the government pays for a part of the CPF contribution of the employer. Still see what we can do going forward, beyond that initial experiment."
Costing the government about S$100 million, the one-off credit was introduced as part of the 2011 Budget and is paid out over three years till 2013.
Turning to Singapore's economic growth, Mr Tharman said the slowdown in the second quarter reflects financial woes in the European Union and the United States.
He said a repeat of the Lehman Brothers crisis is unlikely, but some mini-shocks can be expected that will affect investor confidence.
Mr Tharman said: "Fortunately our fundamentals are strong, in the labour market, in terms of investment flow into Singapore. But we cannot be unaffected by what's going on in the rest of the world and we'll see some sluggishness in the external environment for some time to come."
Mr Tharman added that strong domestic demand in Asia will continue to be a major driver of growth.
Last edited by a moderator:
... @ ze expense of peasants or otherwise ...
