In accordance with the Retirement and Re-employment Act (RRA), the minimum retirement age is 62 years. Employers are not allowed to dismiss any employee below this age because of the employee’s age.
Employers must offer re-employment to eligible employees who turn 62, up to age 65, to continue their employment in the organisation.
Special Employment Credit (SEC)
Through the SEC, employers who voluntarily re-employ workers aged 65 and above will receive an additional offset of up to 3% of an employee’s monthly wages.
The SEC enhancement will help employers manage their overall costs and encourage them to voluntarily re-employ older workers aged 65 and above.
To find out more, visit the SEC website.
You are eligible for re-employment 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 the employer.
- Are medically fit to continue working.
If you are eligible for re-employment but your employer is unable to offer you a position, then your employer must offer you a one-off Employment Assistance Payment (EAP).
Your re-employment contract should be for at least 1 year, renewable every year up to age 65.
The first initial contract of re-employment should start on the same day you turn 62 years.
If you turn 62 on 1 April 2016, your re-employment contract’s initial start date should be 1 April 2016.
Salary and benefits
Your salary may be adjusted based on factors such as new duties or responsibilities. You should negotiate these changes with your employer when you finalise your new contract. A good reference is the Tripartite Guidelines on Re-employment of Older Employees.
Negotiating a re-employment contract
Keep the following in mind when negotiating the terms of a re-employment contract.
- Identify eligible employees for re-employment.
- Begin discussions as early as 6 months before your employee turns 62.
- For eligible employees, offer a re-employment contract at least 3 months before their retirement date.
- For employees who do not qualify, inform them early so that they can better prepare for their retirement or seek other employment opportunities.
- Refer to the Tripartite Guidelines when making your re-employment offer.
- Ensure terms and conditions are fair and reasonable.
- Make your job preferences known early in the consultation process.
- Be flexible and keep an open mind about possible changes to your job arrangement or employment terms.
Employment Assistance Payment (EAP)
If your employer has considered all available re-employment options within the organisation and is still unable to identify a suitable job for you, the company may offer you an Employment Assistance Payment (EAP).
The EAP is:
- Offered only after a thorough review, as a last resort.
- Meant to help you tide over a period of time while you 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.
You should work together with your employer (or union, if applicable) to resolve any differences.
You can also approach the Commissioner for Labour (COL) in the following situations:
When to approach
You are not offered re-employment and you dispute your employer’s reasons for it. This could include not meeting the re-employment eligibility criteria, no suitable job vacancy, or dismissal during re-employment.
No later than 1 month after the last day of employment
You feel that the terms and conditions of the re-employment offer or the EAP amount offered is unreasonable.
No later than 6 months after the last day of employment
You can notify the COL in writing using one of the following methods:
- File re-employment related issue online.
- Make an appointment to talk to our Labour Relations Officer.
- Send a letter to:
Commissioner of Labour
Ministry of Manpower
Labour Relations and Workplaces Division
1500 Bendemeer Road
Ministry of Manpower Services Centre
Include details of your dispute including supporting documents, names, contacts, position held, job description, length of service and re-employment terms offered to you.