On 29 September 2014, the Ministry of Manpower (the “MOM”) issued a press release announcing that the Tripartite Committee on Employability of Older Workers (the “Tricom”) has made certain recommendations concerning the timeline for raising the re-employment age ceiling from 65 to 67 years. Under the current Retirement and Re-employment Act, employers are required to offer re-employment to eligible employees who turn 62, up to the age of 65.

Tricom recommendations

The Tricom considered the views of various stakeholders such as unions and employer groups prior to making the following recommendations that the Government:

  • Adopt a promotional approach towards raising the re-employment age ceiling from the current 65 to 67 years old;
  • Provide incentives to encourage companies to re-employ their older workers beyond 65 years old in the interim, before implementation of the appropriate legislation.

Advisory on recommendations

Attached to MOM press release is an Advisory issued by the Tricom to encourage and guide employers on the implementation of re-employment of older employees from age 65 to 67 years. Employers are encouraged to actively plan for, and re-employ as many of their older employees between 65 and 67 years old as possible in suitable jobs with reasonable terms and conditions. Employers should extend the same re-employment practices for employees aged 65 to 67 in accordance with the recommendations set out in the Tripartite Guidelines on the Re-employment of Older Employees (aged 62 to 65) where possible, though the Guidelines may be adapted to provide more employment opportunities for workers aged 65 to 67.

Government accepts recommendations

The Singapore Government has accepted Tricom’s recommendations and will allow companies adequate time to adjust before legislating, and will provide incentives for employers who voluntarily re-employ older workers beyond the age of 65 ahead of it being legislated. The MOM is working with the tripartite partners and the Ministry of Finance on an incentive package to be announced in early 2015 and made effective from 1 January 2015.

Reference material

The press release is available from the MOM website www.mom.gov.sg by clicking here