Prime Minister Lee Hsien Loong said employers' contribution rates to the Central Provident Fund (CPF) for older workers have to be increased.

At a pre-Budget dialogue with union groups last week, Mr Lee noted that a large portion of workers above their 50s kept their jobs during the recession because their CPF was lower.

Currently, CPF contribution rates are cut when workers reach 50 years old, and cut further when they turn 65. The National Trades Union Congress (NTUC) has been calling for this to be reviewed.

Mr Lee reassured unionists that the increase will be gradual and that the Government will spend more on social schemes for the elderly, poor and those from broken families.

Singapore's 2012 Budget Statement will be delivered on 17 February 2012.