From this July onwards, older workers can work until the age of 67. Parliament passed the changes to the Retirement and Re-employment Act yesterday, and these will apply to Singaporeans and permanent residents who turn 65 from July. Employers will be required to re-hire them, provided they perform well and are healthy and able to continue working.
If companies are unable to make space for these older employees, they can transfer them to subsidiaries or another employer with the workers’ consent; or as a last resort, give them a one-off payment. Companies are also not allowed to reduce the wages of workers who turn 60 from July.
This initiative is to benefit the rising number of elderly people who want to continue working. From 2006 to 2015, the ratio of workers aged 60 and above in the workforce increased from 5.5 percent to 12 percent.
The government is also reviewing the wage subsidies currently given to companies that hire older workers, as these incentives will expire in July and a decision has to be made before then.
The National Trades Union Congress, Singapore National Employers Federation and Ministry of Manpower released updated guidelines yesterday to aid employers in preparing for the July changes.
