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Parliament: Singapore to raise re-employment age to 67 from Jul 1, 2017
SINGAPORE will raise its re-employment age to 67 from 65 with effect from July 1, 2017.
On Monday, Parliament passed the Retirement and Re-employment (Amendment) Bill 2016 which specifies that the new re-employment age of 67 will apply to locals who turn 65 on or after Jul 1, 2017.
"This is what tripartite partners agreed to after extensive consultations," a joint statement from the Ministry of Manpower (MOM), National Trades Union Congress and Singapore National Employers Federation said.
In April 2016, MOM announced that the tripartite partners had agreed that the new re-employment age of 67 would take effect from Jul 1, 2017 after extensive consultations.
Sam Tan, Minister of State for Manpower, said the new re-employment age would allow workers who wish and are able to continue working stay employed.
The new law has an option to allow eligible employees to be re-employed by another employer - something which is not allowed currently. It also removes the option of employers cutting employees' wages at age 60.
"Allowing eligible employees to be re-employed by another employer will also help to provide more options for employers and employees," said Mr Tan.
Heng Chee How, Deputy Secretary-General of the National Trade Union Congress added that the amended Bill would remove "the possible cutting of wages at age 60 while enlarging the pool of companies that can re-employ a worker reaching the statutory age of 62 beyond his immediate employer, subject to the worker's express agreement".
The Retirement and Re-employment (Amendment) Bill 2016 amends the Retirement and Re-employment Act (RRA) to effect the above changes from July 1, 2017.