Sunday, February 03, 2019

CPF contribution rate for older workers

The CPF contribution rate for workers 55 years and below is 37%. The worker contribute 20% and the employer 17%.

For older workers, the contribution rate dropped to 26% (between 55 to 60), 16.5% (between 60 to 65) and 12.5% (above 65%). The reduction applies to employers and workers.

This table shows the current contribution rates.

The govt has now formed a committee to review the contribution rate. The goal is to increase the contribution rate so that the older workers have adequate savings for retirement.

Should the contribution rate for the older workers be the same as for the younger workers?

I give my views here:

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