One of the most recent changes to the employment act that has been implemented with effect from 1st July 2017, is the increase in retirement age from 65 to 67. This recent change has come a long way since 2014.
Since 2014, it has been recommended by the Tripartite Committee on Employability of Older Workers to increase the re-employment age. This was recommended to allow older workers to continuously contribute, and to support themselves in their old age. The intention is that older workers come with them a wealth of experiences, skills and knowledge, which will be able to add value to Organizations.
Interestingly enough, the legal provision which allows a wage cut to employees above 60 have also been eliminated.
Before 1st July 2017, the Singapore Government will continuously support employers recognise the value of older employees. Organizations who voluntarily re-employ workers above 65 years old will be offered Special Employment Credit (SEC). The SEC allows employers to enjoy an additional offset of up to 3% of the employee’s salary.
To help the older workers adapt, Organizations should implement plans and be flexible to the change in job scope or even redeployment for workers up to 65 years of old. These should be properly discussed and communicated to prevent future disputes.
Companies should already have in place plans and work scope for workers up to 65. With this new implementation to go beyond 65, employers have to adapt flexibility to provide more employment options such as flexible-work arrangements, job modifications, re-deployment to other sectors. These should also be properly discussed with workers to prevent disputes