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    Feb 13, 2014

    'Close CPF rate gap'

    The National Trades Union Congress (NTUC) also wants the Government to close the gap between older and younger workers when it comes to Central Provident Fund (CPF) contribution rates.

    The hope: To narrow the gap by around 1 to 2 per cent during the coming Budget on Feb 21.

    Currently, the CPF rate for workers aged above 50 to 55 is 32.5 per cent, compared to 36 per cent for their younger counterparts.

    Mr Heng Chee How, NTUC's deputy secretary-general, said that the labour movement has called on the Government to honour a commitment made in 2012 to equalise the CPF rates between the two groups.

    Out of the proposed increment, the employer's contribution should be at least a percentage point, Mr Heng noted.

    And should workers also have to contribute to the raised rate, these additional contributions should go to their Ordinary Accounts, he said, adding: "Many workers continue to have obligations to service, like housing mortgages, some are continuing to fund their children's education... so cash flow is also a consideration for workers."