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Changes to re-employment from 1 July 2017

From 1 July 2017, employers must offer re-employment up to the age of 67. There will be new rules for re-employment by a different employer, with safeguards for employees.

Re-employment up to age 67

We are raising the re-employment age to help older workers who wish to continue working as long as you are willing and able.

Employers will be required to offer re-employment to eligible employees from age 62 to 67 to continue employment in your organisation.

Eligibility

You will be eligible for re-employment up to age 67 if you:

  • Are a Singapore citizen or Singapore permanent resident.
  • Have served your current employer for at least 3 years before turning 62.
  • Have satisfactory work performance, as assessed by your employer.
  • Are medically fit to continue working.
  • Are born on or after 1 July 1952.

If you are born between 1 January 1950 and 30 June 1952, please refer to the current re-employment eligibility.

Re-employment by a different employer

If your employer is unable to re-employ you, your employer can transfer re-employment obligations to another employer instead of paying an Employment Assistance Payment (EAP) to you.

There will be safeguards for you:

  • You 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 you, including:
    • Being required to offer re-employment to you up to age 67.
    • Offering EAP should the employer subsequently be unable to offer re-employment to you up to age 67.

More guidelines about re-employment by a different employer will be made available later.

Revised tripartite guidelines

To prepare employers and employees for the new re-employment age that will take effect on 1 July 2017, the tripartite partners have released a revised set of Tripartite Guidelines on Re-employment of Older Employees.

There are two key changes to the revised guidelines:

  • Employment Assistance Payment (EAP) amounts
    Employers should consider all available re-employment options to identify suitable jobs for eligible employees. If employers are unable to offer re-employment, as a last resort, they must offer an EAP. The revised EAP amounts took into consideration rising wages and that employers’ re-employment obligations will be extended by two years.
  • Medical benefits
    Employers should use MediShield Life to provide medical benefits to re-employed employees. This can be done by providing additional MediSave contributions in place of in-patient medical benefits. This would make medical benefits more portable.

The current Tripartite Guidelines on Re-employment of Older Employees, dated 11 January 2011, will continue to apply until 1 July 2017.

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