eNewsletter

Singapore’s new Retirement and Re-employment Act took effect on January 1, 2012.  This act allows employees to continue working past the statutory retirement age of 62.  Previously, companies could force employees to retire once the employees reached 62.

The new retirement-hiring law reflects the rising aging workforce of Singapore.  With average life expectancy in Singapore reaching 82 in 2011, more older workers have been choosing to stay in the job force rather than retire.  In 2011, 61.2% of older workers age 55 to 64 were still working, a significant increase from the 57.2% in 2009.

The Retirement and Re-employment act requires employers to continue offering employment to eligible employees who have reached retirement age.  Employees are considered eligible if they have reached 62 years old, have satisfactory work performance and are medically fit.  Employers must keep these workers for at least one more year.  If the employer is unable to keep an eligible employee because of lack of vacancies, the employer must offer an employment assistance payment (EAP). The EAP tides the employee over while he/she attempts to find other sources of employment.

Approximately 80% of companies have measures put in place to re-employ workers beyond 62 years old.  Singapore’s government expects to have full compliance by the end of 2012.