Deputy Prime Minister (DPM) and Finance Minister Heng Swee Keat delivered the Fortitude Budget in Parliament on May 26, 2020, the fourth budget delivered this year in light of the Covid-19 pandemic that has battered the economy.

Increase in CPF contribution rates will be deferred by one year

In his speech, he shared that the government will be deferring the planned increase in CPF contribution rates for senior workers by one year.

The rise in contribution rates, which was originally scheduled to increase on Jan. 1, 2021, will be deferred to Jan. 1, 2022.

This is to help businesses manage their costs in these challenging times, Heng said.

The CPF Transition Offset scheme will similarly be deferred until after the higher contribution rates take effect.

Heng thanked the National Trades Union Congress (NTUC) and the Singapore National Employers Federation for their support on the deferment.

Increase in CPF contribution rates to help older workers boost retirement savings

Previously during National Day Rally 2019, PM Lee announced that the government will raise older workers' CPF contribution rates starting from 2021.

This was meant to help older workers boost their retirement savings, as long as they stayed employed.

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Top image via Gov.sg/YouTube, Wikipedia Commons