SINGAPORE: Singapore workers may have more to cheer about early next year.

The incoming labour chief Lim Swee Say is pushing for an increase in the employers' CPF contribution rate in a move that will benefit middle-income workers.

Low-wage workers could also enjoy higher take-home pay and more savings in their CPF accounts.

The labour movement is proposing to cut CPF contributions for this group and give top-ups through the Workfare scheme.

The NTUC's incoming chief is hopeful the government will take this up as soon as possible, perhaps as early as Budget Day on February 15th.

Mr Lim said that with the Singapore economy set to grow by 7.5% to 8% this year, there is no better time to re-look reducing both the employers' and employees' CPF contribution rates for low-wage workers.

He said: "The feedback we are getting on the ground is that many low-wage workers are hoping we can find ways to help them reduce their CPF contributions so that they can have increased take-home pay. They desire to have $1 today, not 30 to 40 years down the road!"

Even though the proposal was rejected by the Manpower Minister 15 months ago, Mr Lim said it's timely to revisit it now, especially since Workfare is now institutionalised as the fourth pillar of Singapore's social safety net.

Mr Lim added that NTUC would also be more persistent in pushing this forward, with encouraging discussions between the unions and the government so far.

Mr Lim said: "The government can find ways to reduce the CPF contribution by low-wage workers, reduce CPF contributions by the employer so that this reduction in CPF contribution rates on both parties - employers and employees -will induce more employers of low- wage workers to put them on the CPF scheme.

"Hopefully, there'll be some savings for their old age and this requires the government to consider whether it is possible to do some CPF topping up in the form of the Workfare initiative."

Middle income workers have not been forgotten either.

Mr Lim is calling for adjustments to employers' CPF contribution.

This was last updated in 2003.

In 2003, the long-term target contribution rates were set at between 30% and 36% for those below 50, and between 24% and 30% for those between 50 and 55 years old.

The salary ceiling for CPF contributions was also lowered from $6,000 to $4,500.

Mr Lim added that any change should not be drastic but introduced in a gradual and sustainable manner, depending on the performance of the company and the economy.

Unionists welcomed Mr Lim's call to revise the CPF contributions.

Nora Kang, president of DBS Staff Union, said: "It has been a bit overdue.....It can help our workers on the mortgage loans whether it's the HDB or private loans and also build up our Medisave as well."

Earlier, Mr Lim officiated at the launch of the Vision Care Movement, a non-profit organisation to promote good eye care practices among Singaporeans. - CNA/ir

SINGAPORE: It's not enough that the government passes changes to CPF, as proposed recently by incoming labour chief Lim Swee Say.

Employers must also show their support, especially to workers who endured CPF cuts during the economic downturns.

So says incumbent NTUC chief Lim Boon Heng.

The proposed CPF changes are almost in the bag.

Mr Lim Boon Heng is positive the government will be receptive to the suggestions, which include cutting CPF contributions of lower-wage workers and thus increasing their take-home pay, as well as restoring CPF cuts for the middle income.

The outgoing labour chief said: "We hope that the Prime Minister and the other Cabinet Ministers should be hearing this favourably. We hope also that the employers would consider this seriously and support this, because workers have made sacrifices in the past few years and since, generally speaking, they're doing well, then they should reciprocate the actions of the workers of the past by doing the small restorations to the CPF."

According to Mr Lim Boon Heng, the call to restore CPF cuts is not new.

He was asked about the issue sometime in the middle of this year.

But he was cautious then because job creation was not high.

And increasing employers' contribution to CPF at that time would give them more reason to retrench workers.

This is especially so in labour-intensive industries where companies can choose to relocate to countries in Southeast Asia and China for cheaper labour.

But, Mr Lim Boon Heng said, things have changed since then, with job creation at an all-time high and Workfare now set to be a permanent feature.

Mr Lim will leave the labour movement in January and begin his new appointment as the deputy chairman of the People's Association (PA).

After leaving the labour movement, Mr Lim will also focus on elderly issues and welfare.

He said: "One of the many things that have to be done will be how to ensure that the seniors in Singapore lead active and meaningful lives. Can the PA work with the grassroots to provide more opportunities for senior citizens to be more actively engaged? So this could mean brainstorming for ideas as to what the community clubs can do." - CNA/ir