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)


Related articles:

Singapore Population White Paper

The Retirement and Re-employment Act

Longer Lifespans for Singaporeans – Implications for Employers

Redesigning Jobs for Mature Workers