Older workers can soon work until 67 years old come 2017
The Singaporean dream of working for the rest of your life is one step closer.
By 2017, older workers will be able to work longer as the Government will amend the law of re-employment age from the current age of 65 to 67. After the law is implemented, companies must rehire workers who are healthy and have performed decently up to the age of 67. If the workers are not rehired, employers are required to make a one-off payment to them.
However, many Singaporeans have mistaken the new rehiring age for retirement age in the workforce. Some expressed their frustration and commented that it was unfair for this new law as the elderly need time for themselves.
From the comments above, it seems that Singaporeans did not fully comprehend the new law passed by the Government. MustShareNews explains to you what it means exactly and how it affects employees.
This new law means that employees have the choice of working until the age of 67 if their employers approve. If not, the company is to pay a one-time compensation to the elderly worker.
Also, the new law does not mean that Singaporeans are not able to retire until 67. Singaporeans can retire at the age of 62 but the decision of retiring or not is solely up to them.
The raise of the re-employment age is to ensure that the elderly have a place in the competitive job market. Since Singapore is facing an ageing society, about two working adults will be supporting one elderly by the year of 2030. The re-hiring age will give the older workers a sense of independence and lessen the burden of the working adult.
Now that you know the difference between re-employment and retirement, you can decide which is best for you. After all, isn’t it the Singaporean dream to work for as long as possible?
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