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MPs urge Govt to narrow gap between older, younger workers

SINGAPORE — They do not make the cut for the Pioneer Generation Package (PGP) but, at the same time, feel the pressure of the rising cost of living as mature workers.

MPs urge Govt to narrow gap between older, younger workers
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SINGAPORE — They do not make the cut for the Pioneer Generation Package (PGP) but, at the same time, feel the pressure of the rising cost of living as mature workers.

Several Members of Parliament (MPs) yesterday expressed concerns for this group, urging the Government to narrow the gap between older and younger workers and progressively restore employers’ Central Provident Fund (CPF) contributions for older workers. Others, however, felt this could make older workers even less attractive in the job market.

MP Pritam Singh (Aljunied GRC) expressed concern that higher CPF contributions would put a tighter squeeze on company profits and cause mature workers to lose their jobs. From January next year, employer contribution rates for workers aged above 50 to 55 will rise by 1 percentage point, with the increase going to the workers’ Special Account.

“I hope employers do not resort to selectively shedding older workers ... The overwhelming majority of Singaporeans in this age bracket do not qualify for the PGP and would need to build up their Medisave and retirement balances in light of the higher Medishield Life premiums,” he said.

However, MP David Ong (Jurong GRC) thinks it is necessary to improve CPF rates to ensure seniors have enough for their housing and retirement needs.

He said it is crucial to change employers’ mindsets, pointing out that ageism in the workplace is very real today.

“Older people are usually shunned, bypassed or laid off simply because of their age,” said Mr Ong.

“Singaporeans must move away from viewing people in their 50s and 60s as over the hill ... Our seniors today are more active, healthier and fitter than before and they can remain productive into their 60s and beyond,” he said.

Nominated MP Eugene Tan said raising employer contribution rates is the right thing to do and employers should recognise their social responsibility to contribute to the healthcare needs of their Singaporean employees.

Nominated MP Tan Su Shan called for more ways to enhance the employability of seniors, such as improving their productivity and allowing mature workers to learn new skills and develop new careers after retirement.

Several MPs also highlighted the need to go beyond the medical concerns of the pioneer generation.

Ms Irene Ng (Tampines GRC) and Ms Lee Li Lian (Punggol East) pushed for a senior pass that would allow the elderly to access tourist attractions or leisure facilities for free or at a special discount. They said enhancing retirement activities could keep pioneers active and independent.

Ms Ng and Ms Tin Pei Ling (Marine Parade GRC) also suggested introducing a cash component in the PGP for cash-strapped pioneers.

This would aid those who might be in good physical but poor financial health, said Ms Tin.

Mr Muhamad Faisal Abdul Manap (Aljunied GRC) asked the Government to consider extending to the pioneer generation a taxi subsidy scheme for disabled Singaporeans, noting that many seniors end up forgoing or delaying medical care as they cannot afford the expenses incurred in travelling to medical institutions.

Dr Intan Azura Mokhtar (Ang Mo Kio GRC) also asked for the group to be provided with free public transport passes.

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