President Halimah Yacob Calls for Fair Treatment of Older Workers in Singapore’s Retirement Law
During a recent appearance on Parliament day, President Halimah Yacob reminded Singapore’s employers that any tweaks to the Retirement and Re‑Employment Act must preserve protections against age‑based dismissals. “You can’t fire an older employee just because they hit 63,” she said, clarifying that the law still bars companies from terminating older workers before the retirement age, unless there’s proven misconduct or incompetence.
The Act’s Main Take‑away
- Retirement Age: Companies must honor a minimum retirement age of 63.
- Re‑Employment Period: Once an employee hits 63, the business must re‑hire them until they reach 68.
- Safe‑Guard for Older Workers: Firing before 63 faces legal penalties.
What Minister of State for Manpower Added
Gan Siow Huang said that if a firm can’t find a fitting role for a senior employee, they may offer an Employment Assistance Payment instead of a direct re‑employment offer.
Why Training Matters
President Halimah urged that companies shouldn’t wait until retirement to roll out training. Instead, it should be a continual part of a firm’s policy, ensuring that staff stay sharp amid shifts like restructuring or automation.
Key Points from the President’s Message
- Age‑Fair Employment: The law protects workers from unjust dismissal but still allows terminations for legitimate performance issues.
- Employer’s Responsibility: Companies should actively develop every employee’s potential.
- Meaningful Jobs for Seniors: “Many employers value older talent,” she said, hoping more will recognize this advantage.
Context and History
Back in 1993, the act introduced a mandatory retirement age—previous norms capped retirements at 55 (or 60 for union workers). Today’s minimum age is 63, though employers can choose to let people stay longer if they wish.
The Ageing Singapore Population
Fast‑forward to 2022, 18.4% of the population was 65 or older, and super‑hot forecasts project that by 2030 this group will comprise about 23.8%.
With the workforce shrinking, safeguarding older workers’ rights and ensuring they can contribute meaningfully is more crucial than ever.
