At his National Day Rally 2019, Prime Minister Lee Hsien Loong announced that the statutory Retirement Age and Re-Employment Age will gradually increase starting from 2021.
The Retirement Age will be raised from 62 (as it was in 2019) to 65 by 2030, while the Re-Employment Age will be raised from 67 (as it was in 2019) to 70 by 2030. This is in view of Singaporeans living healthier and longer and supporting older workers’ aspirations to remain in the workforce for longer.
With the topic of retirement and re-employment gaining more attention, we thought it would be appropriate to discuss some of the misconceptions we notice people have regarding retirement and re-employment ages.
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The Retirement Age Is Different From Re-Employment Age
The first thing to know is that Singapore’s official retirement age differs from the re-employment age.
Retirement Age: Currently 63 and to be increased to 64 in 2026 (To be increased to 65 by 2030)
Since 2022, the official retirement age in Singapore is 64. That means your employers cannot ask you to retire before that age.
As with employment at any age, your employers can always sack you for poor performance or retrench you if the company needs to shed headcounts. However, dismissing an employee for age-related reasons is not allowed and is considered discriminatory. Employees who feel they have been laid off because of their age can inform the Ministry Of Manpower (MOM) if they feel their employment has been unfairly terminated.
Re-Employment Age: Currently Till 68 and to be increased to 69 in 2026 (To be increased to 70 by 2030)
Workers who have reached 63 can officially retire in Singapore. However, those who want to continue working can seek re-employment with their existing employer.
Employers must offer re-employment to eligible employees who want to continue working within their company up to the age of 68. If they cannot do so, they may transfer them to their subsidiaries or another company with the consent of their workers.
It’s worth noting the definition of “eligible employees”. The screenshot below is taken from MOM.
Source: MOM
Simply put, if you are healthy and have performed well previously, your employer has to offer you a re-employment contract if you want to continue working.
Your Employment Contract
Probably the most important area apart from the eligibility criteria, it’s important to know that the re-employment contract offered to workers may not necessarily be similar to their existing contract. Areas such as scope of work, roles and responsibilities and salary may be adjusted. Your employer is not obliged to offer you the same package for the re-employment contract.
Re-employment contract should be at least 1 year long. It should be renewable on an annual basis till the age of 68.
Read Also: What Are The Different Types Of Unemployment
Key Difference Between Retirement Age And Re-Employment Age
The critical difference between the retirement and re-employment ages is that employers are not allowed to terminate workers before the retirement age (63) without valid reasons.
Beyond the age of 63, employers are expected to offer re-employment for workers who want to continue working. However, there is an allowance for their scope of work and salary to be negotiated. This is assuming that workers are medically fit to continue working.
Employers unable to provide re-employment options are expected to offer their workers a one-off Employment Assistance Payment (EAP) equivalent to 3.5 months salary, subject to a minimum of $6,250 and a maximum of $14,750.
Retirement Age & Re-Employment Age Does Not Mean You Have To Continue Working Till Then
One of the biggest misconceptions is that a retirement or re-employment age means workers must continue working until that age. This is not true.
Both the retirement and the re-employment age are meant to protect the interest of workers, not their company. Workers can choose to retire earlier if they want to. An extension of the retirement or re-employment age does not change that fact. So no, you are not expected to work till 68 unless you want to.
This article was first written in 2017 and has been updated with the latest information.
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