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Singapore\u2019s 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.<\/p>\n
Employers who cannot offer re-employment must give affected workers a one-off Employment Assistance Payment while they look for other work.<\/p>\n
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\u2019 salary, with a minimum of S$6,250 and a maximum of S$14,750.<\/p>\n
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.<\/p>\n
A new Re-employment Credit will be introduced from 2028 to defray employers\u2019 business costs associated with retaining senior workers.<\/p>\n
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.<\/p>\n
The wage ceiling for the new credit scheme will be higher to account for wage growth.<\/p>\n
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.<\/p>\n
The Progressive Wage Credit Scheme will also be updated. It co-funds employers\u2019 wage increases required under the Progressive Wage Model and local qualifying salary requirements, as well as voluntary pay rises for lower-wage workers.<\/p>\n
During a panel discussion, the workgroup co-chairs were asked how a balance will be struck between two segments of jobseekers \u2013 fresh graduates and seniors.<\/span><\/p>\n 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.<\/span><\/p>\n 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.<\/span><\/p>\n MOM is looking at what can be done to strengthen such mentorships, he added.<\/span><\/p>\n<\/div>\n
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