CPF contribution rates for older workers, aged above 50 to 55, raised by between 1 and 2 percentage points

Mr Heng said any increase in employees' CPF contribution rates should go into the Ordinary Account, which many Singaporeans use to pay their housing mortgages.

In the long term, the labour movement wants to see a review of CPF contribution rates and ceiling.

This could be in the area of adequacy - looking at just how much a worker needs to save for retirement.

Another area is to look at greater parity in contribution rates, between employer and employees, across all age bands.

The last time CPF rates were reviewed was more than 10 years ago, in 2003. Since then, contribution rates have either met or surpassed the targets set, across all age bands.

For example, the target set in 2003 was between 30 and 36 per cent for workers aged 50 and below. Today, it's at 36 per cent.

For workers between 51 and 55 years or age, the target was between 24 and 30 per cent. That has since risen to 32.5 per cent.

The employer's contribution rates have also remained below that of employees, with the widest gap also seen in the above 50 to 55 age group.

Mr Heng added: "We will have to continue to look at the new reality, what constitutes adequacy in this new reality and also the business considerations of competitiveness.

"We note that in the past, subject to those considerations, one-to-one contributions by employers and employees was possible in certain periods... but not always.

"So again we would want to discuss whether or not it's possible to contribute on par, where the considerations allow for it."

The last time employer and employee CPF contribution rates were equal, at 20 per cent each, was in 1997/98.

To lessen the burden on businesses, employer contributions were reduced, following the Asian financial crisis. 

More information can be found in CNA online