Employers face higher wage costs with CPF rate hike

February 24, 201410:14 am318 views
Employers face higher wage costs with CPF rate hike
Employers face higher wage costs with CPF rate hike

EMPLOYERS are likely to see their wage costs rise more than usual come January next year, because they have to contribute more to the Central Provident Fund.

Finance Minister Tharman Shanmugaratnam said yesterday that the CPF rate for employers would increase by at least one percentage point to help pay for workers’ future healthcare needs.

Besides a one-point rise that will go into the Medisave Account of all workers, employers must also contribute more to the CPF of older workers – one point for workers in the above 50-55 age group; and half a point for those in the above 55-65 age group.

With the one-point adjustment for Medisave, Mr Tharman noted, the overall CPF rate would be 37 per cent for workers up to 50, breaching the 30-36 per cent that was targeted in 2003.

 

source: businesstimes.com.sg

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