This is another brilliant scheme in the brewing. The struggle to get oldies to work longer continues. Now the struggle to get oldies to be better paid. The cost of hiring oldies is lower because of lower CPF contribution, so can raise their CPF.
With all due respect to the oldies, I am also one, depending on the job one is doing, many will slow down and some jobs that are physically and mentally more demanding will extract their tolls on the oldies. Other than some exceptions and some specialized professions when age and experience counts more, many oldies would not be able to contribute as much as the young.
Let’s face the fact that nature made us that way, when one is young, one is full of energy and vibrancy. When one is old, hitting the sack is a big draw and taking life at a slower pace is only natural. Our taxi drivers can drive till 73 and may be even extended to 75. I don’t think it is a good thing. The pathetic state of Sinkies to have to work till that kind of age or else, is a reminder of our failure in our retirement scheme and pension fund. Everything is wiped away by high inflation and the high cost of living is making the oldies into the workforce imperative.
Would employer seriously want to pay more to the oldies for lesser work? Or can the oldies contribute the same with other workers for the same wage? If yes, then there is no issue. Can our workforce can be competitive with higher pay for the oldies without the same level of productivity?
What is questionable is who is going to profit from more CPF contributions from the oldies’ income? Why not just pay direct to their salary when other oldies are withdrawing their CPF savings?