4-3-2024 (SINGAPORE) In a move to adapt to longer life expectancy and address the manpower shortage, Singapore has announced plans to progressively raise the retirement and re-employment ages. Starting from 2026, the retirement age in Singapore will be extended to 64, with the aim of reaching 65 by 2030. Additionally, the re-employment age will be raised to 69 in 2026 and further increased to 70 by 2030. Minister of State for Manpower, Gan Siow Huang, made this announcement in parliament on Monday.
The new measures mean that employers will be required to offer re-employment to their employees until they reach the age of 69, provided they have satisfactory work performance and are medically fit to continue working. However, employees who joined a company after turning 55 must have served their current employer for at least two years before becoming eligible for re-employment. The re-employment contract should have a minimum duration of one year and be renewable annually.
This increase in retirement and re-employment ages was first announced in 2019, when the retirement age was set at 62. The first increment took effect in July 2022. Minister Gan encouraged employers to start planning early to ensure a smooth transition and urged companies to adjust their manpower and upskilling plans to retain senior workers.
The Ministry of Manpower (MOM) stated that the decision to raise the retirement and re-employment ages is driven by longer life expectancy and the need to address the shortage of manpower. The changes are not expected to affect the Central Provident Fund (CPF) withdrawal and payout ages.
In addition to the adjustment in retirement and re-employment ages, the Ministry of Manpower also announced an increase in salary support caps for Workforce Singapore’s Career Conversion Programmes, effective from April 1. The cap for mature or long-term unemployed workers will be raised to S$7,500 (US$5,600) per month, up from S$6,000, while the funding for other workers will increase to a maximum of S$5,000 per month, compared to the current S$4,000. The funding rates will remain at up to 70% of the worker’s monthly salary for citizens and permanent residents below the age of 40, and 90% for mature and long-term unemployed workers.
Minister for Manpower, Tan See Leng, also announced that the Career Conversion Programme will be expanded to support employers in reskilling existing workers for new growth job roles, going beyond just addressing redundancy risks. He encouraged employers to engage with Workforce Singapore to explore how the program can assist them in meeting their talent needs.
