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DPM Lawrence Wong said in his Budget speech today (Feb 14) that the government will align the CPF contribution rates of platform workers and companies with those of employees and employers over five years as part of strengthening protections of such workers.

Platform workers who are younger than 30 when the changes are implemented will be required to make increased CPF contributions,

These changes will help platform workers raise their total earnings and strengthen their housing and retirement adequacy, but in the short term, they will affect the take-home pay of these workers, he reasoned.

To cushion this impact, the government will provide CPF transition support to lower-income platform workers who see an increase in their contribution rates for the first four years after implementation.

Minimum monthly payout for seniors on CPF Retirement Sum Scheme upped to S$350

The government will continue with the next increase in CPF contribution rates in 2024 for senior workers aged 55 to 70 from 1 January 2024, to enhance retirement adequacy.

This is in line with the recommendations of the Tripartite Workgroup on Older Workers, said DPM Wong.

As with previous increases, employers will be provided with the CPF Transition Offset to deal with business costs arising from this increase.

He added that the minimum CPF monthly payout for seniors on the Retirement Sum Scheme will also be raised to S$350 a month.

The CPF monthly salary ceiling will be raised to help middle-income Singaporeans save more for their retirement. To keep pace with rising salaries, the monthly salary ceiling will be raised from S$6,000 to S$8,000 in 2026.

From September 2023, the increases will be phased over four years to allow employers and employees to adjust to the changes.

Featured Image Credit: Shutterstock

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