News Mania Desk / Piyal Chatterjee / 4th December 2024
On March 4, 2024, at the Ministry of Manpower’s 2024 Committee of Supply (COS) debate, the Singapore government announced significant revisions to its retirement and re-employment policy. These adjustments will take effect in 2026, with the goal of improving the employment opportunities for the country’s senior workers.These new standards will elevate the retirement age to 64 and the re-employment age to 69. This is part of a larger effort to adapt the retirement and reemployment framework to meet the needs of the country’s aging population, which necessitates increased workforce flexibility.
These adjustments are significant because the present retirement age is 63 and the reemployment age is set at 68. According to the government’s long-term strategy, these age requirements will continue to rise: by 2030, the retirement age will be increased to 65, and the re-employment age would be 70.The decision to raise the retirement and re-employment ages demonstrates Singapore’s commitment to adapting its workforce to demographic shifts. The country’s population is ageing, and an increasing percentage of elderly workers want to stay in the workforce for extended periods of time.
There are various initiatives provided by the Singapore government to support employers with the re-employment of their eligible employees as follows:
- Part-time Re-employment Grant (“PTRG”)
The PTRG provides up to S$125,000 to employers who meet the relevant eligibility requirements and who offer part-time re-employment, other flexible work arrangements and structured career planning to their senior workers.
If the company is eligible for the PTRG, the company can get S$2,500 per resident senior worker (age 60 and above), capped at a total of S$125,000 per company.
- Senior Employment Credit (“SEC”)
The SEC provides wage offsets for employers who employ Singapore aged 60 and above who are earning up to S$4,000 a month. The wage support ranges up to 7%, depending on the employee’s age.
