Allowing Middle-income Workers above Age 50 to Increase CPF Contributions to Reduce Tax Liability
- Zaqy Mohamad asked about measures to help middle-income workers above 50 who face higher personal income tax and lower CPF interest due to reduced contributions, and whether they could voluntarily contribute more to CPF for tax relief and retirement income.
- The Minister for Manpower explained that CPF rates for older workers were lowered to enhance employability but have been gradually increased since 2012, with further studies ongoing on future rate adjustments.
- Voluntary CPF contributions through the Minimum Sum Topping Up Scheme allow members to top up their Special or Retirement Accounts with cash and receive tax relief up to $7,000 annually.