Revert to uniform contribution rate for CPF

Sent to Today paper on 9 February, but not published.


The Prime Minister has announced that the CPF contribution

rate for older workers will be increased gradually.

I urge the Prime Minister to take the bold step and revert 

to a flat rate of CPF contribution for all employees, 

regardless of age.

Employers already have the means of adjusting the 

wages of older workers based on their contribution and work 

productivity. This can be carried out through negotiation on a 

case by case basis, based on the financial situation of the 

employer.

Older workers will accept a wage cut, if 

their employer is not able to afford their high wage. They 

are sensible and will accept lower wages to avoid 

retrenchment or unemployment.

There is no need for the Government to legislate a 

lower rate of CPF contribution for older workers which 

have the negative consequences of disrupting their 

savings for retirement and creating fear of financial 

insecurity.

Tan Kin Lian