01-16-2017, 04:02 PM
Mary Pat Campbell
Join Date: Nov 2003
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Older workers can work until age 67 from July
In another change, employers won't be allowed to cut salary of staff who turn 60
Older workers will be able to work until age 67 from July this year.
If employers cannot find work for such workers in their companies, they can transfer them to their subsidiaries or another employer with the workers' consent, or give them a one-off payment as a last resort.
Employers will also not be allowed to cut the salary of workers who turn 60 from July.
These changes to the Retirement and Re-employment Act, passed in Parliament yesterday, will apply to Singaporeans and permanent residents who turn 65 from July.
Employers will be required to re-hire these workers if they have satisfactory work performance and are healthy and able to continue working.
The move will benefit the increasing ranks of older workers who want to continue to work, said Manpower Minister Lim Swee Say.
The proportion of residents aged 60 and above in the labour force increased from 5.5 per cent in 2006 to 12 per cent in 2015.
"As we live longer, we can expect this proportion to continue to grow," Mr Lim told the House.
Allowing employers to transfer older workers to another employer benefits both workers and employers, he added. "The employee will have more opportunities to be re-employed... The second employer will benefit from hiring an employee with experience," he said.
On removing the law that allows employers to cut the pay of workers at age 60, Mr Lim said that joint efforts by unions, employers and the Government have been successful in getting companies to move away from a wage system where they peg salaries to years of service.
Time to retire Singapore's retirement age? Not so fast, some experts say
SINGAPORE — With the re-employment age raised to 67 from 65 come July, some have questioned the need for a statutory retirement age as the evolving economy has made it possible for older workers to stay relevant and productive.
In Parliament on Monday, Pasir Ris-Punggol GRC MP Zainal Sapari said there is a need to “be bolder to work towards removing the retirement age and allow a worker to work as long as he or she could”.
However, Manpower Minister Lim Swee Say said that doing away with a retirement age would, among other things, affect the career aspirations of younger workers.
Experts TODAY spoke to yesterday were divided on the need for a statutory retirement age — kept at 62 at present — in the current Singapore labour landscape with an ageing workforce and slowing population growth.
Those in favour of retaining a retirement age argued that it serves as a way for businesses to rejuvenate their headcount, while those who oppose said economic productivity is not solely defined by one’s age.
CIMB Private Banking economist Song Seng Wun said the concept of a retirement age has become more ambiguous as the Singapore population has become more educated and technologically savvy, and enjoys longer life expectancy — factors that allow workers to continue contributing meaningfully well into their golden age.
“We are not only going to have uncles and aunties to do menial labour work, but we will have uncles and aunties who know technology, who can use technology and who have skill sets that can still be relevant regardless of how old they are,” he said.
Mizuho Bank’s senior economist Vishnu Varathan said that as Singapore moves towards a knowledge-based economy, many jobs have become less labour-intensive, and this allows elderly employees to be as productive as their younger counterparts.