Hike in CPF rates for senior workers delayed to help tame business costs

Singapore

IN WHAT is described as a demonstration that it has left no stone unturned in seeking ways to help businesses manage costs in the current crisis, the government has said it will delay the planned increase in Central Provident Fund (CPF) contribution rates for senior workers for one year.

The contribution hikes, with employers and employees each increasing their contribution by 0.5, 1.5 or 2.0 percentage points, depending on the age bands, will now kick off on Jan 1, 2022 instead of Jan 1, 2021, Deputy Prime Minister Heng Swee Keat said when he spelt out details of the Fortitude Budget on Tuesday.