Singapore retirement age rose from 62 to 63 on 1 July 2022, and the re-employment age rose from 67 to 68. Both ages are set under the Retirement and Re-employment Act. The change matters to every employer in Singapore and to every worker who is close to 62. This note explains the two ages in plain terms and what each side should do.
What changed on 1 July 2022
The retirement age is the youngest age at which an employer may end a worker's job just because of age. Before 1 July 2022 it was 62. It is now 63.
The re-employment age is the age up to which an employer must offer a worker a new contract, or a payment in its place. It was 67. It is now 68.
The Ministry of Manpower (MOM) announced the first step in a bill debated in Parliament in November 2021. The bill also lets the Minister set the ages as high as 65 and 70 later. Any further rise is not fixed yet. It depends on agreement among the government, employers and unions, known as the tripartite partners.
What the retirement age means for a worker
A retirement age of 63 does not force anyone to stop work at 63. It sets the earliest age at which age alone can be a reason to end employment.
Below that age, an employer cannot dismiss a worker only because of age. Dismissal for other reasons, such as poor performance or misconduct, still follows the normal rules.
Workers who are already at or near 62 should check their contract. Some contracts set their own retirement age. The age in the contract cannot be lower than the age set by law.
What employers must offer older staff
When a worker reaches the retirement age, the employer must offer re-employment to an eligible worker. Re-employment can continue until the re-employment age of 68.
The new job can be on adjusted terms. The employer may change the role, hours or pay if the worker can still do the job and the terms are fair. If the employer has no suitable job, it can instead pay a one-off Employment Assistance Payment, or EAP.
An employer should also plan ahead. Talk to staff early, review job roles that may need to change, and keep a record of every offer. A clear record helps if there is a dispute.
Who qualifies for re-employment
Not every worker qualifies. MOM sets three plain conditions. The worker must have satisfactory work performance, be medically fit to keep working, and be a Singapore citizen or permanent resident.
There is also a service test for people hired late. A worker who joined the employer at age 55 or older must have at least two years of service with that employer to qualify.
A worker who does not qualify should be told by the employer. The worker can raise a concern with MOM if the process looks unfair.
This is general information about workplace rules. It is not legal advice, and it is not medical advice. Check the details of your own case with MOM or a qualified adviser.
What did not change, and what comes next
The change does not touch Central Provident Fund (CPF) rules. MOM stated that there are no changes to CPF withdrawal ages. The payout eligibility age stays at 65, and members can still delay payouts to get higher monthly amounts.
The wider plan is to move toward 65 for retirement and 70 for re-employment within this decade. This goal comes from the 2019 Tripartite Workgroup on Older Workers. The 2022 step is the first move on that path.
For employers, the sensible step now is to update contracts and HR policies to show the new ages. For workers, the sensible step is to ask your employer how the new ages apply to you. Do this before your birthday, not after.
Sources
- Ministry of Manpower, press release on the Retirement and Re-employment (Amendment) Bill 2021 and CPF (Amendment) Bill 2021, mom.gov.sg.
- Ministry of Manpower, re-employment guidance, mom.gov.sg/employment-practices/re-employment.
- Allen & Gledhill, retirement and re-employment ages raised to 63 and 68, allenandgledhill.com.
- Human Resources Online, reminder on the retirement age rising to 63, humanresourcesonline.net.