From July onwards, older workers can work until the age of 67

Posted by at 12 January, at 18 : 05 PM Print

From July onwards, older workers can work until the age of 67

The recent changes made on the Retirement and Re-employment Act has now allowed the older workers to work until they are 67 years. The Act will apply to the Singaporeans citizens and the permanent residents who will turn 65 after July, 2017.

According to this new Act, employers have hire them again if they are healthy, are able to continue working, and still performing well.

According to the revised Retirement and Re-employment Act, if the enterprises cannot incorporate these old employees, they have to transfer them to their subsidiaries, or if the workers consent find another employer, or give them a one-off payment as a last resort.

The Act prohibits the companies from reducing the wages of workers who become 60 from July.

This step has been taken because number of elderly people wanting to continue working has rose substantially in the recent times. The number of workers aged 60 and above increased from 5.5 percent in 2006 to 12 percent in 2015.
The wage subsidies that the government gives to companies hiring older workers are also under review. Since these incentives are going to expire in July, a new decision has to be made.

In order to incorporate the changes made in the Act, Singapore National Employers Federation, National Trades Union Congress, and the Ministry of Manpower have updated their guidelines.


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