On March 4, at the Ministry of Manpower Committee of Supply 2024, it was announced that the retirement age in Singapore will be raised to 64 while the re-employment age in Singapore will be raised to 69 in 2026. Companies must offer eligible staff re-employment until the age of 69, or employment assistance in its place, according to The Straits Times.
Currently, the retirement age is 63 while the re-employment age is 68. By 2030, the retirement age is expected to be 65 and the re-employment age is expected to be 70.
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 percent, depending on the employee’s age.
Further information on the current retirement and re-employment practices in Singapore, including eligibility requirements is available.
Thomas Choo is an attorney with Clyde & Co in Singapore. Heather Lim is a legal trainee with Clasis LLC in association with Clyde & Co in Singapore. © 2024 Clyde & Co. All rights reserved. Reposted with permission of Lexology.
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