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Incentives for companies to re-employ staff past age 65



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You could soon receive incentives to offer re-employment for workers past the age of 65, before the legislation kicks in to raise the re-employment age in Singapore to 67.

Singapore’s Ministry of Manpower (MOM) has accepted the recommendations of the Tripartite Committee on Employability of Older Workers (Tricom) in raising the re-employment age from the current 65 to 67.

The move signifies the Ministry’s interest in ensuring adequate labour supply, said Manpower Minister Tan Chuan-Jin.

“The employment rate for older workers has steadily increased, from 57% in 2009 to 65% in 2013. Last year, 99% of private sector local employees who turned 62 were offered re-employment.”

Under the current retirement and re-employment act, employers are required to offer re-employment to eligible employees who turn 62, up to the re-employment age of 65.

Once the proposed changes take affect, employers will need to restructure their wage systems or redesign jobs to comply with the extended re-employment obligations. If they do so before it is made mandatory, they may be able to use new incentives by the Ministry.

ALSO READ: 99% of Singapore’s older workers have been offered re-employment

These details are still being worked out by MOM, together with the Finance Ministry and tripartite partners.

“In a tight labour market where the availability of foreign manpower will continue to be stringently managed, companies that retain and make full use of their existing manpower will enjoy an advantage over their competitors,” said Diana Chia, Tricom member and president of the National Trades Union Congress.

Tricom also pointed out employers may have the flexibility to adapt the principles to suit their particular job arrangements, such as re-employing workers in the same job, modifications to existing jobs, re-deploying the employees to different jobs, or part-time work.

In cases where employers have made reasonable efforts but are unable to find suitable jobs within or outside the company for the eligible employees,  they would have to make payment towards outplacement assistance as a last resort.

ALSO READ: Why you should hire back former employees

Image: Shutterstock

 



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