SINGAPORE (Aug 8): Prudential Singapore has raised its Central Provident Fund (CPF) contribution rate for its employees above the age of 55, in a move to help its older employees better prepare for financial needs with longer life expectancy.
Beginning Aug 7, 2019, employees above 55 will have the option to enjoy a CPF contribution rate of 37%, which is the same as that of their younger colleagues. The 37% contribution rate is split between 17% from employers, and 20% from employees themselves.
Prudential Singapore’s higher contribution rate for older employees will take effect only if these employees voluntarily raise their individual CPF contribution rate to 20%.
Under current CPF guides, workers between 56 and 60 need to pay just 13% of their salary into CPF, with an equal proportion by employers. For those between 61 and 65, the corresponding contribution rates will be reduced even further to 7.5% and 9% respectively.
The point of lower employers’ contribution rates for older workers is to improve their employability.
According to Prudential Singapore, this new CPF scheme for its older employees is an opt-in scheme. The company recognises that some individuals may prefer to have more disposable income to meet their current needs.
