For some of us, 1 May is seen as just an extra holiday, or if we are lucky a long weekend. There are no relatives we need to visit, festive occasions to celebrate with friends or even anywhere we can go to catch fireworks.<\/p>\n\n\n\n
For those who are unaware, we wrote about the history of Labour Day<\/a> and how it came about. Labour Day has its roots in the fight for workers\u2019 rights in the late 1800s in the US with its origins tainted with violence and blood<\/a>.<\/p>\n\n\n\n Read Also: Why We Celebrate Labour Day On 1 May<\/a><\/strong><\/em><\/p>\n\n\n\n If there is one thing we should talk about during Labour Day, it\u2019s workers\u2019 rights.<\/p>\n\n\n\n Like many other policies and topics, Workers\u2019 right isn\u2019t a static concept. What may seem reasonable in the past \u2013 for example, Singapore used to have a 5.5-day workweek but this was changed in the early 2000s \u2013 may no longer be supported or accepted today.<\/p>\n\n\n\n As society and the needs of a country evolved, the workplace has to keep up with the times. In this article, we highlight some of the notable changes in workers\u2019 rights over the past decade.<\/p>\n\n\n\n First introduced in 2012, the Progressive Wage Model (PWM) states that a minimum wage should be paid to workers in specific industries. This minimum amount also increases as workers progress in their careers, whether that\u2019s through work experience or by upgrading themselves by attending accredited courses.<\/p>\n\n\n\n Today, PWM covers 7 sectors\/occupational PWs<\/a>. There are the cleaning sector, security sector, landscape sector, life and escalator sector, retail sector, food services sector and occupational PWs for administrators and drivers.<\/p>\n\n\n\n Take for example the cleaning sector. Today the PWM states that a general cleaner needs to be paid a basic monthly salary of at least $1,312. By 30 June 2029, the salary of general cleaners will need to be at least $2,420, an increase of about 84% in basic monthly salary. And if they attain the position of supervisor, the minimum basic monthly salary will need to be at least $3,210 by 2029.<\/p>\n\n\n\n Read Also: Progressive Wage Model: How Much Will Singapore Employers Have To Pay Their Workers<\/a><\/strong><\/em><\/p>\n\n\n\n During the 2019 National Day Rally<\/a>, it was announced that the statutory retirement age will be raised from 62 to 65 while the re-employment age will be increased from 67 to 70. This increase will take place gradually, starting in 2022.<\/p>\n\n\n\n As I wrote back in 2019<\/a>, the increase in the retirement age makes perfect sense. This is because it aligns the retirement age with when CPF LIFE payouts commence. From a retirement planning standpoint, having the retirement age to be different from the CPF LIFE payout age was always odd.<\/p>\n\n\n\n Moreover, with the increase in life expectancy and also an increase in health-adjusted life expectancy, it makes sense to allow workers who want to continue working to do so.<\/p>\n\n\n\n It\u2019s important to stress that the increase in the retirement and re-employment age in Singapore is a worker\u2019s right, rather than a worker\u2019s obligation. Both the retirement age and the re-employment age\u00a0are meant to protect the interest of workers, not their company. Workers can always choose to retire earlier if they want to.<\/p>\n\n\n\n 60 is going to be the new 55. This is true at least when it comes to the CPF contributions of older Singapore workers.<\/p>\n\n\n\n Also announced during the 2019 National Day Rally, the CPF contribution rates for older workers will increase, starting in 2022. By about 2030, the full planned increase should be fully implemented.<\/p>\n\n\n\n From the table above, we can see that the planned increase in CPF contributions for older workers will mean that a future 60-year-old worker will get the same CPF contributions as a 55-year-old worker today. This also applies to future workers between the age of 60 to 70, as they will get the same CPF contributions as someone that is 5 years younger than previously in the workforce.<\/p>\n\n\n\n Read Also: Senior Worker CPF Contribution Rates And CPF Transition Offset Scheme: What Businesses Need To Know<\/a><\/strong><\/em><\/p>\n\n\n\nIntroduction Of The Progressive Wage Model For Low Wage Workers<\/h3>\n\n\n\n
Raising The Retirement & Re-Employment Age For Singapore Workers<\/h3>\n\n\n\n
Higher CPF Contributions For Older Singapore Workers<\/h3>\n\n\n\n
Age bands<\/strong><\/td> Previously<\/strong><\/td> As Of 1 Jan 2022<\/strong><\/td> By about 2030<\/strong><\/td><\/tr> 55 and below<\/td> 37%<\/td> 37%<\/td> 37%<\/td><\/tr> Above 55 to 60<\/td> 26%<\/td> 28%<\/td> 37%<\/td><\/tr> Above 60 to 65<\/td> 16.5%<\/td> 18.5%<\/td> 26%<\/td><\/tr> Above 65 to 70<\/td> 12.5%<\/td> 14.5%<\/td> 16.5%<\/td><\/tr> Above 70<\/td> 12.5%<\/td> 12.5%<\/td> 12.5%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Platform Workers Will Also Receive CPF Contributions Starting From 2024<\/h3>\n\n\n\n