Misconception of Re-Employment Age Extension

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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:

  1. Companies must now offer employees the eligibility to work until 67. Previously it was until 65.
  2. Companies are not allowed to reduce the salary of employees who turn 60 from July onwards.
  3. 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
  4. 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.

Recommended Read: Singapore Stock Market: Outlook

Common Misconceptions: Re-employment age increased from 65 to 67. …

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