Positive Changes For Older Employees In Singapore


Jan 10, 2017

Yesterday, in Singapore, the Parliament passed the Retirement and Re-employment (Amendment) Bill 2016, which will help the older workforce with re-employment opportunities.

Here are the main changes that will go live on 1 July 2017.

Increasing the re-employment age from 65 to 67 years

Locals who were born on or after 1 July 1952 (or in other words, those who turn 65 on or after July 2017) will be eligible.

Providing an option for re-employment in other organisations

In case the employer cannot re-employ staff in their own company, they have the option to arrange for re-employment with another organisation. This will help to provide more flexibility to the labor market.

However, the employee must agree to such a transfer of re-employment. If the employee does not consent, then the employer must meet the re-employment obligations

As per the MOM –

“This amendment in the Bill allows an employer who is unable to offer a suitable position in his own organisation, to transfer his re-employment obligations to another employer, provided this is done with the older employee’s consent and that the second employer agrees to take over all applicable re-employment obligations.

Allowing eligible employees to be re-employed by another employer will help to provide more options for employers and employees.”

Removing the ability for employers to reduce staff compensation at 60

The new law will not allow employers to cut the salary of those who turn 60 anymore.

The provision to cut wages (by up to 10%) was introduced in 1999 and while 98.5% of companies were not using it in practice, the new law is still a welcome change.


  About The Author  

Amit is an experienced career, business and HR professional. Previously, he has worked with organisations such as Bain & Company, Morgan Stanley and Citigroup. Amit has advanced degrees/qualifications in Career Counselling, Organisational Psychology & HR, Occupational Psychometrics, Career/Life Coaching & Business.

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