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Written Answer by Mr Tan Chuan-Jin, Acting Minister for Manpower, to Parliamentary Question on Employers’ CPF Contributions For Workers Age 50 And Above

Notice Paper No. 407 of 2013 For The Sitting On Or After 22 Oct 2013
Question No. 1522 For Oral Answer

MP: Mr David Ong Kim Huat

To ask the Acting Minister for Manpower whether the Ministry will consider removing the need to reduce the employer's CPF contributions of our Singapore workers turning age 50. 


  1. We lowered CPF contribution rates in 2005 and 2006 for workers aged 50 to 55. This was done to improve their employability because seniority-based wage systems were common then, which discouraged employers from retaining and hiring older workers. However, since then, older workers’ employment rates have improved considerably, with progress made in wage restructuring and other efforts to enhance their employability.
  2. In 2012, we consulted our tripartite partners and reached a consensus that the CPF contribution rate for workers aged 50 to 55 should eventually be restored to the same level as younger workers. We took the first step last year by raising the contribution rate for workers aged 50 to 55 by 2.5 percentage points in September, bringing their total CPF contribution rate up from 30% to 32.5%.
  3. We will continue to monitor the situation on the ground before taking the next step. While we remain committed to restoring the contribution rates of older workers, this must be done at a suitable time to moderate the impact on take-home pay for employees and business costs for employers.