Employers must offer re-employment to eligible employees who turn 62, up to the age of 65. Find out if you are eligible, guidelines on re-employment and what to do if there is a dispute.
Under the Retirement and Re-employment Act (RRA), the minimum retirement age is 62 years. Employers are not allowed to dismiss any employee below this age because of the employee’s age.
Employers must offer re-employment to eligible employees who turn 62, up to age 65, to continue their employment in the organisation.
Special Employment Credit (SEC)
Through the SEC, employers who voluntarily re-employ workers aged 65 and above will receive an additional offset of up to 3% of an employee’s monthly wages.
The SEC enhancement will help employers manage their overall costs and encourage them to voluntarily re-employ older workers aged 65 and above.
To find out more, visit the SEC website.
You are eligible for re-employment if you:
- Are a Singapore citizen or Singapore permanent resident
- Have served your current employer for at least 3 years before turning 62
- Have satisfactory work performance, as assessed by the employer
- Are medically fit to continue working
If you are eligible for re-employment but your employer is unable to offer you a position, then your employer must offer you a one-off Employment Assistance Payment (EAP).
Your re-employment contract should be for at least 1 year, renewable every year up to age 65.
Salary and benefits
Your salary may be adjusted based on factors such as new duties or responsibilities. You should negotiate these changes with your employer when you finalise your new contract. A good reference is the Tripartite Guidelines on Re-employment of Older Employees.
Negotiating a re-employment contract
Keep the following in mind when negotiating the terms of a re-employment contract.
Employment Assistance Payment (EAP)
If your employer has considered all available re-employment options within the organisation and is still unable to identify a suitable job for you, the company may offer you an Employment Assistance Payment (EAP).
The EAP is:
- Offered only after a thorough review, as a last resort.
- Meant to help you tide over a period of time while you seek alternative employment.
- A one-off payment equivalent to 3 months' salary, subject to a minimum of $4,500 and maximum of $10,000.
- For employees who have been re-employed for at least 18 months, a lower EAP amount of 2 months of salary could be considered, subject to a minimum of $3,000 and maximum of $7,000.
- In addition to the EAP, employers are encouraged to provide outplacement assistance, to help employees find alternative employment.
You should work together with your employer (or union, if applicable) to resolve any differences.
You can also approach the Commissioner for Labour (COL) in the following situations:
|Situation||When to approach|
|You are not offered re-employment and you dispute your employer's reasons for it. This could include not meeting the re-employment eligibility criteria, no suitable job vacancy, or dismissal during re-employment.||No later than 1 month after the last day of employment|
|You feel that the terms and conditions of the re-employment offer or the EAP amount offered is unreasonable.||No later than 6 months after the last day of employment|
You can notify the COL using this appeal form.