The global solution for human resource professionals, combines custom research, strategic white papers, country primers, webinars and OnDemand educational programs, and the expert guidance...
By Michael Mackey
Nov. 28—Singapore's retirement age will be raised from 65 to 67 using a “promotional” approach recommended by the Tripartite Committee on Employability of Older Workers (Tricom), which is composed of representatives of unions, employers and the government.
“The promotional approach is about encouraging and incentivizing beforelegislating,” a Ministry of Manpower spokesperson told Bloomberg BNA.
The ministry provided no details on when legislation might be expected.
“The tripartite partners will review the effectiveness of the promotional approach and will recommend mandating the reemployment of workers beyond age 65 at an appropriate time,” the MOM spokesperson said.
Tricom member Stephen Lee, employers representative and immediate past president of the Singapore National Employers Federation, suggested, however, that legislation may be some time in coming.
“We . . . welcome the time given to help employers to manage their older workers over the next few years before legislation sets in,” Lee said.
During this transitional period, employers are encouraged to voluntarily reemploy older workers to take advantage of their skills and experience.
“The promotional approach comprises incentives, as well as Tricom's ongoing efforts to enhance public perceptions of older workers,” the MOM spokesperson said.
MOM, Tricom and the Ministry of Finance have been discussing possible incentives to encourage companies to rehire workers older than 65, although no details have yet been released.
“We'll work out the package of incentives with the Government and will announce it at Budget 2015,” Amy Khor, Tricom chairperson and senior minister of state for manpower and heath, said in an MOM statement. “But employers have our assurance that the incentives will be effective from Jan. 1, 2015, and we encourage companies to start planning now and start putting in place policies and processes to prepare to reemploy workers beyond age 65.”
For its part, the private sector is calm about the measures proposed.
“Tricom's recommendation is a clear signal to employers that the government will be legislating the extension of reemployment age beyond 65 in the future and that they should start preparing for that,” a spokesman for the Singapore National Employers Federation told Bloomberg BNA.
Singapore currently has a tight labor market, the result of a sustained economic boom and falling birth rates, and many employers are already reemploying older workers for their skills and to mentor younger staff, the federation and other sources noted.
Nearly all (97 percent) of companies in a survey conducted by the federation had offered reemployment to employees who turned 62 on or after Jan. 1, 2012, and 90 percent reported no reduction in compensation for those rehired, which the federation took as a sign that employers could bear the cost of reemploying older workers.
“With more workers reaching age 62 to 65 as a result of the aging workforce, employers must be prepared to reemploy more of such workers,” according to the federation. “They therefore must take appropriate measures such as wage restructuring or job design in order to be ready for this.”
To contact the reporter on this story: Michael Mackey in Bangkok at email@example.com
To contact the editor responsible for this story: Rick Vollmar at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)