Singapore – Parliament to raise re-employment age to 67

By memberservices@staffingindustry.com (Danny Romero)

The Retirement and Re-employment (Amendment) Bill 2016 was passed Monday by Singapore’s Parliament specifying that the new re-employment age will be raised from 65 to 67 with effect from 1 July 2017.

Singapore’s tripartite partners, the Ministry of Manpower, National Trades Union Congress and Singapore National Employers Federation, agreed that the new re-employment age of 67 will apply to locals who turn 65 on or after 1 July 2017, i.e. those born on or after 1 July 1952.

On April 2016, the Ministry announced that the tripartite partners had agreed that the new re-employment age of 67 would take effect from Jul 1, 2017 after extensive consultations.

Another key feature of the bill introduces an option to allow eligible employees to be re-employed by another employer to increase labour market flexibility. This amendment in the bill allows an employer who is unable to offer a suitable position in his own organisation to transfer his re-employment obligations to another employer, provided this is done with the older employee’s consent and that the second employer agrees to take over all applicable re-employment obligations.

The bill also removes the option of employers to cut employees’ wages at age 60. This option was originally intended to help employers with seniority-based wage systems manage costs. Over the years, tripartite efforts have been successful in moving employers away from seniority-based wage systems. Hence, the bill removes this option, in line with tripartite partners’ agreement.

“We thank the tripartite partners for supporting this bill”, said Sam Tan, Minister of State for Manpower. “Raising the re-employment age from 65 to 67 will help older workers who wish and are able to continue working stay employed. Allowing eligible employees to be re-employed by another employer will also help to provide more options for employers and employees.”

Source:: Staffing Industry Analysts Daily Newsfeed