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Higher Age Ceiling For Older Staff
Recommendations for a gradual increase of the current re-employment age from 65 to 67 has been accepted by the Government, paving the way for a higher age ceiling for older staff.
The Ministry of Manpower (MOM) also mentioned that it will be working with the Tripartite Committee on Employability of Older Workers (Tricom) as well as the Finance Ministry on an incentive package to support companies that voluntarily re-employ their older workers beyond 65. The incentive package will be unveiled early next year and will be backdated to 1 January 2015.
The Tricom has been discussing the timeline for a higher age ceiling since the end of last year, with Diana Chia, president of the National Trades Union Congress, saying that the unions will work with member companies to raise the age ceiling ahead of the legislation kicking in. She said, “In a tight labour market where the availability of foreign manpower will continue to be stringently managed, companies that retain and make full use of their existing manpower will enjoy an advantage over their competitors.”
Last year, the employment rate for older workers rose from 57 percent in 2009 to 65 percent and 99 percent of private sector local staff who turned 62 were offered re-employment.
