The re-employment age will be raised to help older workers who wish to continue working as long as they are willing and able.
Employers will be required to offer re-employment to eligible employees from age 62 to 67 to continue employment in their organisation.
An older worker will be eligible for re-employment up to age 67 if he/she:
- is a Singapore citizen or Singapore permanent resident.
- Have served his/her current employer for at least 3 years before turning 62.
- Have satisfactory work performance, as assessed by his/her employer.
- is medically fit to continue working.
- is born on or after 1 July 1952.
Re-employment by a different employer
If the employer is unable to re-employ the older worker, the employer can transfer re-employment obligations to another employer instead of paying an Employment Assistance Payment (EAP)
to the older worker.
Safeguards for the older workers include:
- The older worker must be willing to accept re-employment with the other employer.
- The other employer must be willing to take on the existing re-employment obligations for the older worker, including:
- Being required to offer re-employment to the older worker up to age 67.
- Offering EAP should the employer subsequently be unable to offer re-employment to the older worker up to age 67.
More guidelines about re-employment by a different employer will be made available later.
Employment Assistance Payment (EAP)
If the employer has considered all available re-employment options within the organisation and is still unable to identify a suitable job for the older worker, the company may offer the older worker an Employment Assistance Payment (EAP).
The EAP is:
- Offered only after a thorough review, as a last resort.
- Meant to help older workers tide over a period of time while they seek alternative employment.
- A one-off payment equivalent to 3 months' salary, subject to a minimum of $4,500 and maximum of $10,000.
- For employees who have been re-employed for at least 18 months, a lower EAP amount of 2 months of salary could be considered, subject to a minimum of $3,000 and maximum of $7,000.
- In addition to the EAP, employers are encouraged to provide outplacement assistance, to help employees find alternative employment.
Changes to Re-employment from 1 July 2017, Ministry of Manpower