Will the government raise the re-employment age to 67?

Senior Minister of State for Manpower Amy Khor said the local government is looking into the possibility of allowing employees to work for another two years.

“We are looking into further raising the re-employment age from 65 years old, possibly to 67,” Dr Khor said in Parliament on Friday.

She was responding to queries by National Trades Union Congress' deputy secretary-general and Senior Minister of State in the Prime Minister's Office Heng Chee How, who had asked for an update on the government’s re-employment plans

“Based on the preliminary findings from our latest survey, 99% of private sector local employees who turned 62 in the year ending June last year were offered re-employment, including 67% of retiring employees who were offered re-employment on existing contracts, with no change to their employment terms,” Dr Khor said.

She added adjustments to employment terms for re-employed employees need to be based on “reasonable factors”, including employee’s productivity, duties and responsibilities, and the extent of seniority elements in the wage structure.

“So far, statistics have been encouraging. Among those re-employed in the same job in the private sector, 96% did not experience a basic wage cut,” Dr Khor said.

Because the Retirement and Re-employment Act has only been in effect for two years, Dr Khor said more time should be given to “monitor its impact”.

“We will announce the proposals, including the appropriate time frame for raising the re-employment age, when these are ready.”