Government concerns about EPS: Benefits-to-contribution imbalance and changing demographics


The primary concern for the government regarding the Employee Pension Scheme (EPS) is the growing gap between the benefits being paid out and the contributions being made by employers. As the population ages and the workforce shrinks, fewer people are actively contributing to the scheme and the amount of money flowing into it has decreased significantly. This has resulted in a widening gap between benefits and contributions, making it increasingly difficult to sustain the scheme.

In addition, the changing demographics of the work force are also creating challenges for the scheme. With more people leaving the workforce due to retirement or other reasons, the number of active contributors is decreasing, while the number of beneficiaries is increasing. This creates a situation where the contributions made by employers are not enough to cover the benefits being paid out.

The government is therefore working to address these issues, and is taking steps to ensure that the EPS remains sustainable in the long-term. This includes encouraging employers to make higher contributions to the scheme, as well as introducing measures to encourage more people to join the workforce and contribute to the EPS.