The retirement age in Singapore will be raised from 65 years to 67 years from 1 July 2017. This was announced in Parliament as part of the Budget Debate 2016. Under this enhanced law, employers will have to offer re-employment to healthy workers aged 62 years onwards till the age of 67 years if these workers have performed satisfactorily.
In the event that an older worker cannot be re-employed for whatever reason, then a one-off payment must be made. Employers may tap on the Employment Assistance Payment (EAP) as a last resort.
At the same time, a provision which allowed employers to reduce the wages of workers turning 60 years old by 10% will be scrapped, in a nod towards the practice of paying wages that are reflective of a job’s worth rather than of the workers’ age.
Some interesting statistics:
- 98% of companies who employ older workers do not cut wages when their workers reach 60 years old
- more than 40% of people aged 65 to 69 years were still working in 2015 (compared to 24% in 2006)
- there are 149,200 workers aged between 60 and 64 years (Jun 2015)
- 900,000 Singaporean workers are expected to be 65 years or older in 2030 (about 1 in 4 Singaporeans)