Singapore’s retirement age increases by one year, so people can only be asked to leave in 2026 when they reach the age of 64.
This is a result of a plan to gradually raise Singapore’s pension time to 65 by 2030.
According to Minister of State for Manpower Gan Siow Huang, who spoke to parliament on Monday ( Mar 4), the re-employment period will also be raised to 69 in 2026.
That means companies must offer re-employment to people until they are 69 years older. The re-employment years will increase to 70 by 2030.
Singaporeans and permanent residents who perform well at work and are medically fit to work remain are available for re-employment.
People who just joined the company after turning 55 must also have worked for at least two times before reaching the retirement age to get ready.
The re-employment deal should be for at least a year and get revocable annually.
When people could get asked to leave at the age of 62, the anticipated increase in pensions and re-employment time was announced in 2019. In July 2022, there was the first improve.
More than nine in ten top employees who were qualified and wanted to work continued to receive re-employment in 2023. Employers should begin planning first, according to Ms. Gan, to ensure that the upcoming increase is implemented just as easily.
Some businesses may need to change their workforce and mentoring strategies to retain older workers, she continued.
” We are a stepped method and announcing the boost earlier because of this.”
These modifications do not affect the Pension withdrawal and payout ages.
MOM claimed that a longer life expectancy is to blame for the increase in pensions and re-employment years. The shift may also aid in resolving the workforce shortage.
Program FOR CAREER Transformation
MOM even made further salary cap increases for Workforce Singapore’s Career Conversion Programmes effective from April 1.
The cap will increase from S$ 6, 000 to S$ 7, 500 ( US$ 5, 600 ) a  per month for mature or long-term unemployed workers. When compared to the current S$ 4, 000, funding for different employees can go up to S$ 5, 000 per month.
The funding rates continue to be equal to up to 70 % of the employee’s monthly salary for citizens and permanent residents under the age of 40, and up to 90 % for the mature and long-term unemployed.
Tan View Leng, the Minister for Manpower, added that the Career Conversion Program for current employees at the company will go beyond reskilling for those in positions with potential duplication.
” Going ahead, we will help companies who are actively reskilling existing workers to take on new development work jobs,” he said.
He urged companies to contact Workforce Singapore to find out how the program can assist them in achieving their skills requirements.