Written Answer to PQ on Support for SMEs for Senior Employment

NOTICE PAPER NO. 428 OF 2026 FOR THE SITTING ON OR AFTER 4 FEBRUARY 2026
QUESTION NO. 1228 FOR ORAL ANSWER

MP: Mr Shawn Loh

To ask the Minister for Manpower whether more longer-term support, including through wage support and reducing employment-related costs such as insurance, can be provided to small and medium enterprises (SMEs) to maintain employment and wages of older workers, so that the impact of decreasing productivity of some older workers as a result of structurally faster technology cycles can be shared between employers and the Government.

Answer:

Senior workers bring a wealth of skills and experience accumulated over their careers. We want to enable senior workers to contribute productively to the economy and support employers in reaping the benefits of an experienced workforce. The Government encourages employers to hire senior workers through the Senior Employment Credit, or SEC. Under the SEC, employers, including SMEs, can receive wage offsets of up to 7% for Singaporean employees aged 60 and above, earning less than $4,000 a month. The Government has recently extended the SEC to end-2026 while we conduct a more fundamental review of our senior employment strategy.

2. In this regard, the Government and tripartite partners have convened a Tripartite Workgroup on Senior Employment to review and refresh our policies to support senior employment. In particular, the Workgroup is studying how to help employers build capabilities to manage a multigenerational workforce and empower senior workers to remain productive and employable. More updates will be provided when the Workgroup releases its recommendations later this year.