Re-employment age ceiling raised to 67

A provision for employers to cut employees' wages at age 60 will also be removed.
A provision for employers to cut employees' wages at age 60 will also be removed. PHOTO: ST FILE

From July this year, older workers will be entitled to re-employment until the age of 67, instead of 65.

This change to the Retirement and Re-employment Act, passed in Parliament yesterday, applies to locals who turn 65 on or after July 1, who are medically fit and have satisfactory work performance.

Employers who cannot find a suitable position to re-employ eligible workers can transfer them to a subsidiary or another company, if both the new company and the worker agree. Otherwise, employees must be given a one-off payment.

A provision for employers to cut employees' wages at age 60 will also be removed. A total of 17 MPs rose to speak on the changes.

SEE TOP OF THE NEWS: Older workers can work until age 67 from July

A version of this article appeared in the print edition of The Straits Times on January 10, 2017, with the headline 'Re-employment age ceiling raised to 67'. Print Edition | Subscribe