Pages

Friday, April 17, 2009

That extra cash would sure come in handy...

CUTTING CPF CONTRIBUTIONS

We need to cover cost of living

Letter from Melvin Lim Soon Hin

DESPITE the extra incentive from the Jobs Credit scheme, several companies have resorted to reducing the salary offered for entry-level positions. A glance through job ads would show that a sales coordinator who would have been paid $2,000 a month last year would have to settle for only $1,500 now, while the wage for an admin position is down to $1,000.

We are among the most expensive cities in the world to live in; such a salary hardly covers the cost of living here. What is there left after our 20 per cent CPF employees’ contribution? Can we really survive on $1,000 or $1,200?

The Government should consider allowing low-income earners — say below $2,000 — to choose to pay a reduced (say, 10 per cent?) CPF contribution to make up for the loss in income. Alternatively, their employee contribution could be reduced and their companies could top up the remainder, since they are already getting funds via the Jobs Credit scheme.

It’ll lessen blow of pay cuts

Letter from Geeta d/o Gopala Krishnan

INSTEAD of deducting the full 20 per cent CPF contribution for both employers and employees, perhaps the quantum could be temporarily lowered during these hard times. For instance, if I have to take a pay cut of 5 per cent, lowering my CPF contribution from 20 to, say, 15 or 10 per cent would definitely help cashflow, and I would not feel the impact of the pay cut.

My employer would also need to fork out less as a contribution to my CPF — it’s a win-win situation for both employer and employee.

From TODAY, Voices- Tuesday, 14-April-2009