By Kor Kian Beng
THE Government has given the go-ahead to raise employers' contribution rate to the Central Provident Fund by 1 per cent to 15.5 per cent, Prime Minister Lee Hsien Loong announced at a May Day rally on Saturday morning.
This will be ramped up in two stages - 0.5 per cent in September, to be paid into the Medisave Account, and 0.5 per cent in the Special Account next March.
With the increase, which is in response to a recent labour movement's call for a partial restoration of the employers' CFP contribution rate to workers in the wake of an exceptionally strong economic growth of 13 per cent in the first quarter, the overall CPF contribution will go up to 35.5 per cent.
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