As reported by Today Online, this was raised by Sembawang GRC – Mr Lim Wee Kiak where he said that while he understands the importance of contributions to the national savings scheme that is the Central Provident Fund (CPF) but during this time, he suggested stopping it for the next three to six months to reduce the manpower cost of employers and to increase the monthly take-home pay of salaried workers.
He also suggested stopping the mandatory MediSave contributions of self-employed persons, including taxi drivers.
“Together with the enhanced Job Support Scheme, this will further cushion employers from manpower cost. For the employees and self-employed persons, it will ease their cash flow,” he said.
Under the Job Support Scheme announced in February’s Budget, the Government provides a wage subsidy to employers in certain industries to help them retain workers who are Singapore citizens and permanent residents.
On Monday, this was enhanced such that businesses in all industries will have 75 per cent of their resident employees’ wages subsidised for the month of April.
So what do you think? Do you think it’s a good idea for the government to pause the CPF at this time?