Singapore to raise reemployment age to 67 next July

Singapore will raise the reemployment age of older workers from 65 to 67 with effect from July 1, 2017, according to Minister of State for Manpower Sam Tan on Friday.

The current reemployment age is 65, which was outlined in 2012. The change means that older employees up to the age of 67 should be given the option to continue working. Tan said that the additional wage offset of 3 percent for employers who reemploy workers above the age of 65, which is currently in place, will continue to Jul 1, 2017, as previously announced.

Tan also announced older workers who meet the above criteria can also be reemployed with a different company if they agree to it.

"We have received feedback that sometimes, employers are unable to find suitable jobs in their own companies, but can help the worker secure reemployment in a related or subsidiary company," said Tan.

In the meantime, the previous legal provision which allows the company to cut employees' wages by up to 10 percent when they turn 60 will no longer be applicable.

"In the early days, older workers were less wage-competitive because of rigid seniority-based wages. Since then, tripartite partners have worked hard to promote flexible and performance-based wage systems... Going forward, pay should be reflective of workers' job scope and value, regardless of age," he added. Enditem