PAP MP Zainal Sapari, the assistant secretary general of NTUC, has called for the government to change the CPF laws asking for elderly workers to pay more CPF contributions:
“Do away with the practice of decreasing employer’s CPF contribution rates for workers above 55. Instead, there should be a universal rate until employees turn 65. This would help workers build their retirement savings, and would be especially beneficial for low-wage workers.”
The PAP MP proposed that employers be made to pay, however local employers will likely reduce take-home salaries to compensate for the increase. MP Zainal Sapari said that CPF need more money because only 42% of elderly aged 55 did not meet the Minimum Sum of S$161,000 in 2016.
The Pasir Ris Punggol GRC PAP MP also inaccurately labelled the Annual Wage Supplement (AWS) as “13th month bonus”, but he suggested that the government should make the AWS compulsory:
“Many companies are denying workers their AWS as a means of cutting cost to remain competitive; and this is rampant in companies providing outsourced services such as cleaning, security and landscape. Denying low-wage workers the 13th month bonus is a manifestation of the prevalent exploitation of this vulnerable lot by their employers. A mandatory AWS will boost this group’s salaries by about 8.3 per cent, and help narrow the income gap.”
PAP MP Zainal Sapari also called for the government to mandate that employers pay outpatient treatment costs, which will also likely affect the take-home salaries.
The Singapore government refuse to enact a Minimum Wage even though income inequality is at it’s highest since Independence.