CW8888: Good news for those like to work longer.
SINGAPORE: The re-employment age of older workers will be raised from 65 to 67 on Jul 1, 2017, Minister of State for Manpower Sam Tan announced in Parliament on Friday (Apr 8) as part of the Committee of Supply debate.
He added that the additional wage offset of 3 per cent for employers who re-employ workers above the age of 65, which is currently in place, will continue to Jul 1, 2017, as previously announced.
EXPANDED RE-EMPLOYMENT OPTIONS
Mr Tan also announced new re-employment options for employees. Noting that employers can sometimes help workers secure re-employment in a related or subsidiary company, the Minister of State said that the law will be amended to allow a new employer to take on the re-employment obligations of the the original employer.
This will be subject to the employee's agreement, and will take effect Jul 1.
And in the situation where re-employment in not possible, the Employment Assistance Payment amounts and age coverage will be increased accordingly, said Mr Tan.
To help employers and workers be prepared for the upcoming changes, the Tripartite Guidelines on the Re-employment of Older Employees has been updated, and will be released over the next few weeks, the Minister of State said.
WAGE CUT PROVISION REMOVED
Mr Tan also announced that the wage cut provision - which allowed employers to reduce wages of workers turning 60 by up to 10 per cent - will be removed from Jul 1, 2017.
He noted that the provision was no longer relevant, as more than 98 per cent of companies no longer reduce wages at 60.
"Going forward, pay should be reflective of workers' job scope and value, rather than their age," said Mr Tan.
He added that the additional wage offset of 3 per cent for employers who re-employ workers above the age of 65, which is currently in place, will continue to Jul 1, 2017, as previously announced.
EXPANDED RE-EMPLOYMENT OPTIONS
Mr Tan also announced new re-employment options for employees. Noting that employers can sometimes help workers secure re-employment in a related or subsidiary company, the Minister of State said that the law will be amended to allow a new employer to take on the re-employment obligations of the the original employer.
This will be subject to the employee's agreement, and will take effect Jul 1.
And in the situation where re-employment in not possible, the Employment Assistance Payment amounts and age coverage will be increased accordingly, said Mr Tan.
To help employers and workers be prepared for the upcoming changes, the Tripartite Guidelines on the Re-employment of Older Employees has been updated, and will be released over the next few weeks, the Minister of State said.
WAGE CUT PROVISION REMOVED
Mr Tan also announced that the wage cut provision - which allowed employers to reduce wages of workers turning 60 by up to 10 per cent - will be removed from Jul 1, 2017.
He noted that the provision was no longer relevant, as more than 98 per cent of companies no longer reduce wages at 60.
"Going forward, pay should be reflective of workers' job scope and value, rather than their age," said Mr Tan.
- CNA/av
Posts
With this change, will CPF rule change as well?
ReplyDeleteCPF withdrawers will push back from current 55 to >55?
CPFLife draw-down >65?
Your guess is as good as mind.
http://www.straitstimes.com/politics/re-employment-age-will-rise-to-67-by-2017
ReplyDelete"From the workers' point of view, 65 may be too early to stop work. Workers want us to raise the re-employment age," said Mr Lee.
Delete"They want to keep working for as long as they are healthy.
"They say 'If I sit at home and do nothing, I will go ga-ga'."
CW8888: Why he think that I am going sit at home and do nothing and then go ga ga?
Retire early is not SAME as doing NOTHING! It is UNJOBBING and then do something or more of those things that we like but we cannot do much when we are still working.
CW,
ReplyDeleteThis is cool or what?
Good better best is removing the reduce wage part ;)
Thank goodness our community here will know a good deal when we see one.
Can retire anytime also can! No one stopping us ;)
This is to benefit those who wish to work beyond 65 so that their employer can't throw the book at them, "Sorry, I have to let you go... Not I want one hor! Big daddy says so! I just following law by law."
CPF Life already have option to delay payouts to age 70.
So the re-employment age got some catching up to CPF Life, not the other way round ;)
LOL!
P.S. Find a good and legal fishing spot in Singapore will keep you busy!
temperament,
ReplyDeleteI welcome the option to work weekends or part-time, if I wish to - even beyond 67!
It all depends on my health and my mood at that time.
It's fun to engage the public and do chit-chat with the customers. Sometimes I will discuss politics with the husband until the wife gets a bit miffed, "You want to serve me or not?"
LOL!