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An elderly worker in Singapore |
The Employer's contribution to CPF will increase to 14.5%, this is by 1.5 percentage points and will be from July 2007.
One percentage point will go to the Ordinary account and 0.5 percentage point to Medisave.
The increase in CPF will apply to all Singaporean workers, except those who are aged above 35 years and earn $1500 or less.
Workers who are above 35 years will have their employers' CPF contributions phased in so that the full 14.5% will kick in only at monthly wage of $1500.
Employee contributions to CPF will be more gradual to increase people's take-home pay.
The CPF component will now start at 0% at the wage level above $500, while the full rate of 20% will have to be paid only when the person starts earning a monthly wage of $1,500.
The Workfare Income Supplement (WIS) scheme will supplement the wages and savings of older low-wage workers with a quantum based on age.
Workers aged above 45 years and earning $1,000 and less, will receive the Workfare supplement to wages by up to $1,200 per year, or between 10 and 20%.
However Workers aged above 35-45 years will receive three-quarters the amount.
The supplement will be given in cash and CPF in a ratio of 1 : 2.5 (Cash:CPF).
The WIS will be given on condition of regular work and for those who live in properties with an annual value of $10,000 or less. - CNA
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