By 2030, retirement age to reach 65
On 4 March 2024 at the Ministry of Manpower Committee of Supply 2024, it was announced that the retirement age in Singapore will be raised to 64 while the re-employment age in Singapore will be raised to 69 in 2026.
Currently, the retirement age is 63 while the re-employment age is 68. By 2030, the retirement age is expected to be 65 and the re-employment age is expected to be 70.
There are various initiatives provided by the Singapore government to support employers with the re-employment of their eligible employees as follows:
Part-time Re-employment Grant (PTRG): The PTRG provides up to S$125,000 to employers who meet the relevant eligibility requirements and who offer part-time re-employment, other flexible work arrangements and structured career planning to their senior workers. If the company is eligible for the PTRG, it can get S$2,500 per resident senior worker (age 60 and above), capped at a total of S$125,000 per company.
Senior Employment Credit (SEC): The SEC provides wage offsets for employers who employ Singaporeans aged 60 and above who are earning up to S$4,000 a month. The wage support ranges up to 7 per cent, depending on the employee’s age.
Further information on the current retirement and re-employment practices in Singapore, including eligibility requirements, can be found at the Singapore Ministry of Manpower website.
Further information on the PTRG and SEC and their eligibility requirements can also be found on the website.
Thomas Choo is the Managing Partner of Clyde & Co’s Singapore office, leading the Corporate and Employment practices.
