During his National Day Rally Speech, Prime Minister
Lee Hsien Loong announced that the re-employment age would be increased to 67 by 2017.
In his speech, PM Lee gave a “sneak peek” at the government’s Action Plan put forward by Gan Kim Yong, head of the Ministerial Committee on Aging.
“Many people who are in their 60s want to work longer,” he said. “So we raised the re-employment age to 65 three years ago. And the unions and workers were very happy. I think the employers have accepted it, they are adjusting to it and starting to benefit from it.”
However, Lee admitted that for some people 65 may still be too early to stop work.
“Workers want us to raise the re-employment age and they want to keep working for as long as they are healthy.”
After careful consideration, the government has decided that 2017 is the “right time” to bring in this higher re-employment age. This means that businesses will have to adjust their re-hiring policies and physical workplace setup to accommodate these older workers.
The added time was given so that organisations could implement all these changes, Lee said. “We want to make sure that the employers have the practical arrangements … Otherwise it’s not sustainable.”
Presently, the minimum retirement age in Singapore is 62. Employers must offer re-employment to eligible staff at this age, giving them the chance to stay on for three more years until they turn 65.
Eligible workers will have Singaporean citizenship or permanent residency and will have worked with the employer for at least three years prior to turning 62. They will also be medically fit to continue in their role and will have performed satisfactorily at work during their time within the company.
This newest announcement will extend this re-employment period by two years, meaning employers will have to offer older workers the chance to remain on until they turn 67.
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