Singapore / Retirement and Re-employment Act – Employers are now required to offer re-employment

Since 1 January 2012, the Retirement Age Act (RAA) has been replaced by the Retirement and Re-employment Act (RRA).

Like the RAA, the RRA also covers all employees who are Singapore Citizens and Permanent Residents.

Under the RRA, the statutory minimum retirement age is still 62, but employers are now required to offer re-employment to eligible employees who turn 62, up to the age of 65.

Eligibility for re-employment

Employees who are Singapore Citizens or Permanent Residents are eligible for re-employment upon reaching the age of 62, if they meet the following criterion:

are assessed by their employer to have at least a satisfactory work performance; and

are medically fit to continue working.

The RRA would, however, not apply to certain categories of employees who have been exempted by the Minister for Manpower under the Act.

Re-employment Terms and Contracts

Employers are required to offer re-employment contracts of at least one (1) year, renewable up to age 65. To provide greater certainty for employees, employers are advised to offer a three-year re-employment contract till 65 at one stretch.

Choosen excerpts by Job Market Monitor from

via Retirement and Re-employment Act.

Employment rate for older workers hit new high in June

THE Retirement and Re-employment Act (RRA), which requires employers to offer workers who retire at 62 the option to continue working, has lost no time in making its presence felt.

It sent the employment rate for older men to a new high in June, just six months after it kicked in.

But another factor in play was the enhanced Special Employment Credit, which was introduced in this year’s Budget to encourage small- and mid-sized companies to engage older workers.

Choosen excerpts by Job Market Monitor from

via Employment rate for older workers hit new high in June.