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Enabling Lifelong Employability (1 of 3): Employing Older Workers

Older workers, with their years of experience, wisdom and loyalty, can be a valuable resource at the workplace.

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Published by Enterprise Singapore
on 11 Oct 2019

Advantages Of Employing Older Workers

  • They take pride in their work and are dedicated to the job at hand.
  • They require minimal training and supervision.
  • They can pass on their knowledge and skills to younger employees.
  • They make excellent mentors and role models.


Employees Eligible For Re-Employment

  • All employees who are Singapore Citizens or Permanent Residents, and have reached the statutory retirement age of 62 years.
  • Employees who turn 62 can continue to be employed in the organisation it they meet the eligibility criteria for re-employment.


Implementing Re-Employment At Work

  • Refer to the Tripartite Guidelines on the Re-employment of Older Employees and align your existing HR policies.
  • Refer to the guidelines on how you can negotiate the terms of re-employment with your employees.
  • Seek input from employees and unions where appropriate.
  • Apply for funding under the Special Employment Credit scheme, which provides employers with continuing support to hire older Singaporean workers.
  • Receive an additional offset of up to 3% of an employee’s monthly wages through the SEC.


Preparing Your Workplace

A. Identify and Engage Employees Eligible for Re-employment

  • Identify employees who are eligible for re-employment by assessing if the: 
    • employee achieves satisfactory work performance; and
    • employee is medically fit to continue working.

  • Under the Tripartite Guidelines on Re-employment of Older Workers, you are encouraged to:
    • Engage employees on pre-retirement counselling or discussion at least 6 months before retirement.

      This can be done as part of the regular performance appraisal process. Discussions should cover the following:

          a.   possible re-employment arrangements
          b.   competencies and training they may require when they are re-deployed to a different job, and
          c.   the pay and benefits they can expect upon re-employment.

    • Offer detailed re-employment contracts at least 3 months before retirement. Employees should be re-employed on a 3-year contract or a term contract for at least 1 year, renewable up to age 65.

B. Special Employment Credit (SEC) Scheme

  • Provides you with continuing financial support when you hire older Singaporean workers.
  • Receive an SEC of up to 8.5% of your employee’s monthly wages if you hire Singaporeans above 50 (between 1 January 2015 and 31 December 2015)..

For more information, please refer to Special Employment Credit.

C. WorkPro Scheme

  • The scheme provides funding support for employers and employees through 2 key strategies:
    • Helps employers improve their workplace practices and enhance work-life harmony.
    • Attracts and retains back-to-work locals, as well as mature workers.

For more details, please refer to WorkPro.


If Employee Is Unable To Be Re-Employed

  • If you are unable to offer re-employment to an employee who is eligible and willing to work beyond the retirement age, you should provide him/her with: 
    • one-off Employment Assistance Payment (EAP)
    • assistance in finding alternative employment
  • The EAP will tide employees over a period of time while they look for alternative employment.
  • The recommended EAP amount is 3 months of salary. A minimum amount of $4,500 and a maximum amount of $10,000 could be considered.
  • Employees who have been employed for at least 18 months may receive a lower EAP amount of 2 months of salary.
  • In addition to the EAP, you are encouraged to provide outplacement assistance to help staff whom you cannot re-employ find alternative employment.
  • For more information, please see Employment Assistance Payment.


Getting More Information

Last Modified Date: 11 Oct 2019