Friday, 15 April 2016

Re-employment age of older workers lifted!

A decision has now been taken to increase the age from 65 to 67 years. The change means that older employees up to the age of 67 should be given the option to continue working. The current re-employment age is 65, which was outlined in 2012. The Government first set the goal of raising the re-employment age to 67 in 1993.

Singapore currently has a tight labor market, and many employers are already re-employing older workers for their skills and to mentor younger employees or new recruits. Ahead of the changes, the Government will continue supporting these employers who are already employing workers above 65 and will extend the additional wage offset of 3% till 1 July 2017. Separately, a legal provision allowing companies to cut the wage of employees who turn 60 will be removed from 1 July 2017.  

Employees could also be re-employed by a different company if they were agreeable, with the law to be amended to allow another employer to take on the original employer’s re-employment obligations. This is subject to the employee’s agreement, and will take effect from 1 July 2017.

In addition, the Employment Assistance Payment (EAP) in both amounts and age coverage will be increased accordingly in situations where re-employment is not possible.

Employers will need to adjust policies for older workers now to ensure that the transition takes place smoothly.



How does boosting the re-employment participation benefit an employer?

Companies in Singapore play an important role in helping older workers to work during their retirement age. For employers, re-employment allows them to tap on a pool of experienced employees to meet their manpower needs, while still maintaining cost competitiveness.

By engaging older workers, you can make use of their wonderful source of experience and knowledgeAs well as bringing a lifetime of experience to your business, older workers are also great mentors to other staff.

There are many benefits and schemes implemented by the Government to further educate older workers and increase their knowledge so to become a more skilled older employeeYou can visit http://www.ntuc.org.sg/ for more information on employee assistance programmes and working assistance programmes.

No comments:

Post a Comment