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CPF Changes and Workfare Income Supplement (WIS) Scheme
With the economy doing well, it is timely to retune the balance of our CPF contribution rates towards the upper end of the 30-36% range. A modest CPF increase will not erode our economic competitiveness and will allow us to better meet the needs of an ageing population. To enable our workers to benefit from economic growth and to help them build up their CPF savings, the Government raised the employer's CPF contribution rate on 1 July 2007 by 1.5 percentage points.
This CPF increase does not apply for older low-wage workers, who are affected by wage stagnation and structural unemployment as a result of global competition. For this group, a different solution is required. Instead of raising their employer CPF contribution rates, we have instead reduced their CPF contributions: a reduction in employer CPF contributions to help improve their employability and a reduction in employee CPF contributions to increase their take-home pay. To complement these CPF changes, Government has implemented a new Workfare Income Supplement Scheme (WIS) which to make up for the reductions in their CPF contributions.
The WIS and the 2007 CPF changes provides more incentives for older low-wage workers to work, and for employers to hire them.
Press Releases
Contact information
Queries on the CPF changes and WIS can be addressed to CPF Board through the following channels:
- Website at www.wis.sg
- Email at wis@cpf.gov.sg
- Hotline number at 1800-2222-888
- Speak to CPF service staff at any CPF Service Centre
- Speak to service staff at any Singapore Post branch
Last updated on 14 May 2008 11:50:23
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