Model ID: c7e87812-cf8a-413a-b5e2-1a97b5d22090
Sitecore Context Id: c7e87812-cf8a-413a-b5e2-1a97b5d22090;
By Ramesh Subbaraman
Forward looking and one which caters to the future needs of workers and businesses – that’s the view of Singapore’s Labour Movement on the slew of announcements made by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam in his Budget 2015 speech on 23 February.
Entitled “Building Our Future, Strengthening Social Security”, the Budget aims to empower every individual to learn and develop throughout life, and strengthens assurance in retirement, among other things.
Retirement Adequacy
The Labour Movement had earlier put forward several proposals in its wish list leading up the Budget, and some of these were accepted.
Among them, calls for an increase in the CPF salary ceiling to $6,000, restoration of contribution rates for workers aged 50 to 55, and an increase of the contribution rate for workers aged 55 and above.
“We are heartened that the Government has heeded our call, which will help workers save more for retirement and healthcare expenditures, and bring about fairer wages for older workers and further boost their retirement savings,” said NTUC President Diana Chia.
NTUC was especially heartened by the restoration of two percentage point in the total CPF contribution rate for workers in the age group of 50 – 55.
NTUC Assistant Secretary-General Cham Hui Fong said: “Workers in their 50s today are akin to those in their 40s in the past. Many mature workers are holding the same jobs and responsibilities as their younger counterparts, henceforth it is only fair that their contribution rates are on par with the younger cohorts. … These additional contributions into their Special Accounts will allow them to better build up their retirement savings.”
SkillsFuture for Lifelong Learning
Another major breakthrough for the Labour Movement in Budget 2015 is the setting up of an individual training account known as SkillsFuture Credit scheme for over two million Singaporeans.
The proposal was recently mooted by NTUC Assistant Secretary-General Patrick Tay who called for the setting up of an individual training account for Singaporean workers to allow them to be responsible for their own training and development needs
Welcoming the announcement, NTUC President Diana Chia said the Budget’s slew of SkillsFuture initiatives is aligned with the Labour Movement’s continued push to build a skilled workforce for the future.
She explained: “The Individual Learning Portfolio will also empower workers to take personal responsibility for their own training needs and career planning, which could also help raise productivity.
“This would also encourage lifelong learning, a mastery of skills and even second-skilling by supporting individual initiated training for a person's entire career and lifetime.”
She added that with the SkillsFuture Credit scheme being made available to all Singaporeans, this will address current gaps for some workers who do not have access to the Workfare Training Support Scheme.”
Source: NTUC This Week
