Wednesday, August 28, 2019

Make CPF contribution voluntary for older workers

Someone was very angry at the proposed increase in contribution rate for older workers. He said that most of these workers do not earn enough. Why force them to save more for their future, when they need the money for their current expenses.

He also argued that the increase from employers will also affect the older workers. Some employers may replace them with younger workers or foreign workers to save cost. Alternatively, the employer may reduce the salary of the older worker to offset their higher expense.

What is the solution?
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