RE-EMPLOYMENT AGE, ASSISTANCE AND TAX RELIEF
Singapore’s approach to retirement has achieved consistently high re-employment outcomes, the workgroup said, with more than nine in 10 eligible employees who wish to continue working offered re-employment.
Employers who cannot offer re-employment must give affected workers a one-off Employment Assistance Payment while they look for other work.
The government will raise the recommended amount for this payment to reflect wage growth in recent years. It is currently three-and-a-half months’ salary, with a minimum of S$6,250 and a maximum of S$14,750.
The government will also enhance the Earned Income Relief for workers employed past the retirement and re-employment ages. Workers aged 55 and above can already claim up to S$8,000 in relief depending on their age.
RE-EMPLOYMENT CREDIT AND WAGE SUPPORT
A new Re-employment Credit will be introduced from 2028 to defray employers’ business costs associated with retaining senior workers.
It will replace the Senior Employment Credit, which provides up to 7 per cent in wage offsets for employers who hire Singaporeans aged 60 and older and who earn less than S$4,000 a month.
The wage ceiling for the new credit scheme will be higher to account for wage growth.
The tripartite workgroup also recommended improving wage support for lower-wage senior workers in particular. This will be done by enhancing the Workfare Income Supplement, which is paid to lower-wage workers in cash and Central Provident Fund payments.
The Progressive Wage Credit Scheme will also be updated. It co-funds employers’ wage increases required under the Progressive Wage Model and local qualifying salary requirements, as well as voluntary pay rises for lower-wage workers.
BALANCE BETWEEN SENIORS AND FRESH GRADUATES
During a panel discussion, the workgroup co-chairs were asked how a balance will be struck between two segments of jobseekers – fresh graduates and seniors.
Mr Dinesh said these two groups should not be seen as competing for the same jobs, pointing out that the bulk of senior workers are lower-wage workers.
Junior hires have a runway to competence before they add value to an organisation, and getting senior workers to guide and mentor them could be a complementary effort in succession planning, he said.
MOM is looking at what can be done to strengthen such mentorships, he added.