SINGAPORE'S government is putting in place legislation to extend re-employment to 67 in two to three years' time, Amy Khor, Senior Minister of State for Manpower, said on Monday.
Currently in Singapore, the statutory minimum retirement age is 62, but employers are now required to offer re-employment to eligible employees who turn 62, up to the age of 65.
Speaking to Parliament at the Committee of Supply 2015, Dr Khor said, in the interim, the government will provide incentives to encourage employers to voluntarily re-employ beyond 65.
She noted that the employment rate of citizens aged 65 to 69 has gone up from 38 per cent in 2013 to 40 per cent in 2014, and is close to those of advanced economies like Japan.
"This is encouraging as it shows that employers find value in their older employees," Dr Khor added.
Based on preliminary findings, nearly all (99 per cent) private sector local employees who turned 62 in the year ending June 2014 were offered re-employment - same as the year before. About 91 per cent of the local employees who accepted re-employment on a new contract in the same job in 2014 did not have their basic wages cut. This is an increase from 83 per cent in 2013.