Singapores Aging Workforce Essay Example | Topics and Well Written Essays - 3000 words

Singapores Aging Workforce - Essay Example Also, in Singapore, the government and employers need to focus on grouping the elderly and their talents before throwing choices at them. It has been believed that Asian countries, with their industrial boom, are busy facing the challenges of financial burdens and over population, where the aging population has a sizable share. In response to this the government and the employers alike have been weighing their possibilities for making use of this as a strength besides offering this segment of people a chance to explore various avenues and gain stability where finances and health care are concerned. The basic trend in Singapore's policy for its aging workforce is a progressive one. The policy implications for this attitude are the society at large as well as employer choices in the basic organizational framework. According to the recent trends, the government has made announcements in its latest budget that it will scale down the contribution rates of workers above 50 years of age so as to accommodate a higher rate of employability of older and low wage workers with a phasing scheme of the contributions to the CPF. Now, the worker earning $50 a month and aged 35 years or older will only pay the full new contribution rate of 13% at a monthly wage of $1,500. (Singapore Budget, 2007) Economic Implications In Singapore, the older low-wage workers are the ones who are affected the most by the changes in the economy owing to the fact that they invariably find it more difficult that most others to learn new skills and upgrade themselves. Apart from this, there is a serious dearth of ways to get re-employed if they lose their jobs where their families do not manage to effectively make ends meet. This has prompted the government to introduce Workfare in the latest budget in order to supplement the wages and savings of older low-wage workers. According to the 2007 Budget, this will also lead to various modifications in the CPF system in order to cater for those options that will complement the Workfare scheme. In this context, it must be pointed out that Singapore is yet to experience the phenomenon called wage supplements despite the fact this concept has been met with ample success in various other countries. For example, the US has developed the Earned Income Tax Credit which negates the level of income tax for low-wage workers. Instead, this act supplements the income actually earned by these people thus giving them more benefits and an impetus to pay taxes or contribute to the Provident Fund. Along the similar lines, the UK has a Working Tax Credit. The schemes provided under this plan have been useful as far as reduction of poverty is concerned, apart from encouraging people to work to show them that they can reach out to the government and the government will certainly reach back to them. For the Singapore government, the implications of these comparisons are many. On the planning boards, the problems in formulating and implementing such plans are clear. To start