Singapore Parliament have recently made changes to the Retirement and Re-employment Act, these changes will act to protect and encourage older workers to participate in Singapore’s economy.
Some of the changes made includes:
- Companies must now offer employees the eligibility to work until 67. Previously it was until 65.
- Companies are not allowed to reduce the salary of employees who turn 60 from July onwards.
- If the company is unable to find work for the older employee, the company can
- transfer the older employees to their subsidiaries
- transfer the older employees to other companies if the employee agrees to the transfer
- If companies cannot continue employing the older employee at age 62, the company is required to pay a one-time Employment Assistance Payment to that employee, pegged at 3.5 times the employee’s monthly salary.
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Common Misconceptions: Re-employment age increased from 65 to 67. …Read the full article →