Singapore: Manpower Ministry Announces New Workgroup on Older Workers

In her speech at Workplan Seminar, Mrs. Josephine Teo, Singapore's Minister for Manpower, addressed strengthening tripartism, and announced that, in focusing on her first initiative concerns--older workers--she would be convening a Tripartite Workgroup on Older Workers. As about one in three of our resident workforce today is aged 50 and above, and older workers have anxieties about the future, particularly as technology disrupts businesses and jobs, the Workgroup would focus on:

• Ensuring an inclusive workforce and progressive workplaces that values older workers;
• Reviewing the longer-term relevance of the retirement and re-employment age;
• Considering the next moves on the retirement and re-employment age; and
• Examining the CPF contribution rates for older workers and their impact on retirement adequacy.

In her speech, Teo also talked about falling fertility rates in other countries and rising participation rates by older workers and raised three questions, which the Workgroup presumably would be addressing:

1. With respect to the international definition of “working-age”, should we continue to assume that most people do not work beyond age 64?
2. If so many countries will have older populations, how can we turn this into a competitive edge for our economy and society? How to make longevity = opportunity for Singapore?
3. For employers, if TFR is falling and populations are ageing, how can we help them adjust their HR strategies to better tap the senior workforce?

Source: Ministry of Manpower Speech at Workplan Seminar (May 28, 2018) Additional sources: Channel News Asia"New tripartite workgroup to study concerns of older workers" (May 28, 2018); The Straits Times "New work group on older workers to look at policies including retirement age and CPF rates" (May 28, 2018); Today "CPF contribution rates for older workers, relevance of retirement age to be reviewed: Josephine Teo" (May 28, 2018)

Singapore: Budget Announcement Includes Increased Subsidies to, and Payments by, Employers for Older Workers

According the Ministry of Manpower, the Budget Statement delivered by Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam, contains two measures related to the hiring of older workers. First, starting January 2016, there will be an increase in the Central Provident Fund (CPF) salary ceiling and an increase in CPF contribution rates for older worker, with an additional 1% Extra Interest on the first $30,000 of CPF balances from the age of 55 also being introduced. See "Factsheet on CPF changes to help Singaporeans save more for retirement."

Second, support will be provided to businesses as they continue to restructure. The Temporary Employment Credit (TEC) will be raised to 1% of wages in 2015, or an additional 0.5 percentage points on top of the original TEC. The TEC will also be extended by 2 years, to help employers adjust to cost increases associated with the increase in CPF salary ceiling and the employer CPF contribution rates for older workers. In addition, employers who re-employ older workers aged 65 and above will receive an additional offset of up to 3% of an employee’s monthly wages through the Special Employment Credit (SEC). The SEC enhancement would help manage employers’ overall costs and encourage employers to voluntarily re-employ older workers aged 65 and above. See "Factsheet on the Extension and Enhancement of the TEC and Enhancement of the SEC."

Source: Ministry of Manpower MOM Announcements in Budget Statement 2015 (February 23, 2015)

In the Press: The Straits Times "Older staff may have to forgo pay rise for more retirement savings" (February 27, 2015); "Tight labour market means firms need older workers despite cost hike" (February 27, 2015)

Singapore: Seniors Group Calls for Legislation Raising Re-Hiring Age to 67

According to news reports, the PAP Seniors Group (PAP.SG)—the seniors advocacy arm of the People's Action Party (PAP)—has submitted a position paper to Singapore's Ministry of Manpower, calling for legislation to increase the rehiring age for older workers from 65 to 67.

PAP.SG believes that while past legislative changes in the employment of older workers, coupled with the government grants and incentives, have helped older workers aged 55 to 64 years, he Government's plan to roll out incentives next year to coax more employers to raise the reemployement age to 67 is unlikely to be as effective as making it the law, especially in non-unionized sectors, where most workers are employed.

Sources: AsiaOne "PAP.SG calls for legislation to raise rehiring age for older workers" (November 18, 2014); Straits Times "Make it a law for firms to lift re-employment age from 65 to 67: PAP Seniors Group" (November 18, 2014)

Singapore: Government Announces Plan for Incentives to Employers Implementing Flexible Work for Mature Workers

At a speech on "Effective Workplaces: Creating a Flexible, Inclusive, Safe and Healthy Workplace" delivered at the Age Management Seminar, Dr. Amy Khor, Senior Minister of State for Health and Manpower, announced several enhancements that the Singapore Government was going to make to WorkPro to help employers better manage mature workers, especially with respect to flexible work arrangements (FWAs). The most significant enhancement is to:

provide employers with a $10,000 incentive to pilot new FWAs, and an additional $10,000 to support them in implementing the FWAs company-wide. With the enhancement, employers can receive a total funding of $40,000 for implementing FWAs, including the reimbursement of expenses incurred during the pilot and company-wide implementation.

In addition, expanding on the $40,000 a year employers can currently receive if they have 30% of their workers using FWAs, there will also be a cash incentive of up to $25,000 a year for employers who have 20% of workers benefitting from FWAs.

Khor also announced that the goverment would introduce a Workplace Health Promotion (WHP) Facilitator’s course, to help arm employers with the necessary knowledge and tools to plan, design and evaluate workplace health programs for their workers. "This will ensure that all employers who tap on the Age Management Grant have the capability to actively promote healthy living among their employees, especially the older ones."

In order "for companies to understand the value that mature workers bring to their business, and adopt a nondiscriminatory mindset when it comes to hiring and managing workers," Khor said that the Tripartite Committee on Employability of Older Workers is launching an advertising campaign—entitled "Tap into a Wealth of Experience"—to highlight the value and experience that mature workers can bring to the workplace.

Sources: Ministry of Manpower Speeches (June 18, 2014); The Straits Times "$10,000 grant for bosses who try flexi-work schemes" (June 19, 2014)

Singapore: Government To Focus on Career Development, not Job Placement Agency, To Help Older Workers

Responding to a question at Parliament, Tan Chuan-Jin, Singapore's Minister of State for National Development and Manpower, stated that the government recognizes that older workers often have special requirements and needs, but that a Job Development, Assessment and Placement Service for older workers is not needed. Rather, the government believes in adopting a functional approach and ensuring that existing service touchpoints are sensitive to the needs and requirements of older workers too.

Thus, the government's aid is "to attract and develop career consultants to have the right experience and personal qualities to assist a wide range of job seekers. The career consultants adopt a case management approach to help each client based on their individual needs. They carry out an in-depth assessment of each client’s capabilities and circumstances, before deciding how best to match job seekers to jobs or whether they need more training to become job ready."

While the Government will provide quality training and employment facilitation services for older workers, our efforts will have limited effect if conditions at the workplace are not conducive for older workers. Hence, we have and will continue to encourage employers to adopt age management practices in their workplaces, such as redesigning work processes to suit the physical abilities and skills of an ageing workforce. This will enable employers to be attractive to older workers in this tight labour market.

Sources: Parliament Questions Oral Answer by Mr Tan Chuan-Jin (July 10, 2012); Today Online "Govt open to set up task force to create more jobs for elderly" (July 10, 2012)

Singapore: Eligibility, Health Insurance Issues Arising under Reemployment Law for Older Workers

Since Singapore's Retirement and Re-employment Act came into effect on January 1, 2012, a number of issues have arisen, according to press reports. Deputy Prime Minister and Manpower Minister Tharman Shanmugaratnam has stated during Parliamentary questions, that 14 dispute cases relating to the reemployment rights of older workers have been presented to the Ministry, and Minister of State for Manpower Tan Chuan-Jin has called on employers to work with insurance companies to ensure that the medical needs of those reemployed are met.

With respect to the dispute cases, Shanmugaratnam said most of the cases were over eligibility for re-employment, but otherwise that implementation has been smooth. He urged employers to refer to the "Tripartite Guidelines on the Re-employment of Older Employees" which provides advice on engaging employees and in making re-employment offers.

With respect to health insurance, Tan said issues are arising with respect to newly re-employed persons more so than older employees continuing to work for their employer. For those affected, hed said that if "an insurance company does not extend the coverage of the scheme up to the age of 65 and also requires re-employed employees to be re-assessed, the employer should work with the insurance company to address this issue so that the medical needs of these employees can continue to be met." In addition:

Industry feedback drawn from various briefing and outreach sessions has shown that companies have already raised the coverage of their group medical insurance schemes for their employees to the age of 65, or beyond. In such cases, re-employed workers would continue to enjoy medical benefits under their company’s medical insurance schemes. By so doing, they would avoid the risk of being denied coverage for existing medical conditions that were previously covered.

Sources: Channel News Asia "Employers to ensure medical needs of older workers are met: Tan Chuan-Jin" (April 9, 2012); Manpower Ministry Parliament Questions and Replies (April 9, 2012)

Singapore: Reactions to Proposals Raising Age Before CPF Rates Are Cut

After Singapore Prime Minister Lee Hsien Loong said that employers' contribution rates to the Central Provident Fund (CPF) for older workers have to go up gradually, concerns have been expressed as to what the effect will be on older workers. Currently, CPF rates are cut when workers reach 50 years old, and cut further when they turn 65.

Unions have welcomed the move, recommending that the policy would be revised so that the drop from 16% to 12% takes place at age 55, 12% to 9% at age 60, etc., stressing that businesses can tackle the extra costs with some smart planning. However, others are worried that it will depress employment for older workers, noting that a larger proportion of older workers kept their jobs during the recession because their CPF was lower and so they were cheaper to retain.

Employers also said that raising the CPF contribution rates will disadvantage older workers, as "it does not help to price an older worker beyond what the employer can afford", reckoned Dr Randolph Tan, SIM University's business programme head.

Sources: Reuters "Singapore to raise pension contributions for older workers" (February 17, 2012); Channel News Asia "Employers' contributions to older workers' CPF to be raised: PM Lee" (Feburary 8, 2011); AsisOne "Employers concerned over higher CPF contribution rates" (February 10, 2012); The Business Times "Start cutting CPF rates only at age 55, say unions" (February 11, 2012)

Singapore: Age Friendly Workforce Asia Conference Opens with Study Showing Younger Workers Less Likely To Hire Older Workers

At the "Age Friendly Workforce Asia 2011" conference held in Singapore November 3 and 4, the Tripartite Alliance for Fair Employment Practices (TAFEP) announced the results of a study seeking to identify common factors that differentiate successful mature job-seekers from those who were unsuccessful. According to Ong Dai Lin, writing for TODAY, the study found that "[a] job-seeker above 40 stands a lower chance of snagging a job if he is interviewed by a panel of younger people. In contrast, his chances are substantially higher if the interviewers included people of similar age or those who are older."

Specifically, the likelihood of mature job-seekers getting and keeping the job jumped from 56.6% to 69.2% when they are faced with a mixed panel of young and old interviewers, instead of a panel comprising just younger people. In addition, the survey found that employability of mature workers increased when they are tech-savvy.

According to the conference sponsors, senior level decision makers came together to exchange ideas on business sustainability and lifelong employability: 400 CEOs and HR Directors "are revolutionising attitudes and harnessing new strategies towards an ageing workforce--the urgent reality of a greying phenomenon that is sweeping across Asia."

Also from TODAY:

Minister of State (Manpower) Tan Chuan-Jin felt that the study had "two key findings": One, diversifying the age composition of the recruitment selection panel increases a mature job seeker's chances. Two, the provision of flexible work arrangements helps widen the pool of mature job seekers.

Source: TODAY Online "Younger interviewers 'less likely to hire those above 40'" (November 4, 2011)

Singapore: Government Employees Will Be Able Secure Post-Retirement Beginning in July 2011

Singapore's Public Service Division has issued guidelines that will allow employees in the Singapore Public Service can look forward to early implementation of re-employment guidelines in July 2011, ahead of the national legislation. Specifically, re-employment will give officers the opportunity to work up to age 65 and, later, up to age 67, if, among other things:

• an officer has, in the three years prior to retirement, put in satisfactory work performance as well as have no disciplinary action taken against them;
• an officer is medically fit to continue working;
• public service organisations may re-employ officers in jobs similar to that before retirement, or on other arrangements such as part-time, job-sharing, or project work; and
• eligible officers must be informed at least six months before retirement to discuss re-employment, with an offer to be made at least three months before retirement.

Source: Prime Minister's Office Public Services Division Press Release (November 30, 2010)

Singapore: Study Finds Older Workers Want Flexibility, Employers Reluctant to Hire

Singapore's Employer Allliance has released a study showing that older workers want flexible working hours to allow them to spend more time with their families and engage in leisure activities. However, the same study shows that only 5% to 15% of new positions here are made available to older people as employers perceive them to have lower energy levels, lack relevant skills and the ability to adapt quickly.

The employee desires were reported as a result of focus groups. Workers aged 50-54 wanted a job that requires minimal travelling and provides flexible working hours. Those aged 55-59 said they wanted greater flexibility when taking long periods of leave to enjoy leisure activities such as travelling and also wanted a lighter workload.

The employer attitudes were reported as a result of a survey of 22 employers. Despite their reluctance to hire, however, the companies do value older workers who are already in their employment, because of their loyalty and wealth of knowledge.

Source: AsiaOne News "Older workers prefer flexi-work" (October 13, 2010)

Singapore: Tripartite Guidelines on Re-Employment of Older Employees Released For Public Consultation

Singapore's Minister for Manpower and Chairman of the Tripartite Committee on Employability of Older Workers are inviting public consultation on a new draft Tripartite Guidelines for Re-employment of Older Employees that is aimed at preparing businesses and employees for re-employment legislation come 2012. This is an updated expansion of the advisory issued in April 2008, incorporating feedback from both employers and unions.

Among other things, the draft guidelines provide practical advice on good re-employment practices, including:

• giving employers the flexibility to employ and retain older workers beyond the minimum statutory age of 62;
  
• offering practical solutions to help employers put in place the necessary systems and processes for re-employment, such as pre-retirement planning and re-employment consultation, job arrangements for re-employment, adjustments to wages and benefits, and the offer of employment assistance payment (EAP); and
  
• encouraging older workers who are adaptable and skilled to continue to work and contribute to the society.

The public may provide feedback and views on the draft guidelines via the Consultation Channel in the REACH portal by December 18, 2009. The tripartite partners expect to finalize and release the guidelines early next year. Source: Ministry of Manpower Press Release (November 16, 2009)

Singapore: Survey Shows Many Boomers Want To Work Past Retirement Age

The "first ever" survey of baby boomers in Singapore finds that boomers want to remain active in their "golden years." According to the Ministry of Community Development and Sports, more than 70% of boomers (those aged 43 to 60) were in the workforce or looking for work, almost half wished to or expected to have to work as long as they could, and, among those who specified an age at which to retire from work, about 30% expected to do so at age 65 or older, beyond the current retirement age of 62.

With respect to continued work, 36% of boomers desired to work part time. In addition, the top three conditions that these boomers look for in post-retirement work were flexible work, similar income, and fewer hours of work. For university-educated boomers, a stimulating workplace and the chance to guide or mentor younger workers were more important attributes than income continuity and work hours.

Sources: Ministry of Community Development and Sports Press Release (January 9, 2009); Channel News Asia "Survey shows 3 in 10 expect to retire at age 65 or older" (January 9, 2009)

Singapore: Prime Minister Reenforces Need for Employers to Retain Older Workers

Addressing the AARP-Council for Third Age Conference "Reinventing Retirement Asia", Singapore Prime Minister Lee Hsien Loong has urged employers to let seniors work longer, focusing on legislation that will require employers to offer re-employment to workers for three more years (until 65), though not necessarily at the same job or pay. According to Lee, "[t]he best way for people to adjust to longer lifespans is to continue working for as long as they can, and to keep themselves occupied after formal retirement."

With respect to retirement age, Lee said that government has only limited abilities to change habits. Thus, even though Singapore's official retirement age is 62, only six out of every ten men are still working at 62, the rest having already retired earlier, while even fewer women work till 62, most having dropped out of the workforce much earlier to raise their families. Accordingly, Singapore is not legislating to further delay the retirement age, but to require employers to offer re-employment to workers at 62 for another three years until 65, though not necessarily in the same job or at the same pay. Other efforts may be more involved:

We can also do more to raise the employment rate of older women. It is often tough for women to continue working while raising a family, even if the husband carries his share of the household responsibilities. We can help by adopting more flexible work arrange¬ments, developing family-friendly workplace policies, and providing accessible and affordable childcare. We should also encourage older women to return to the workforce, through targeted outreach and retraining.

Source: Prime Minister's Office Speech (January 8, 2009)

Singapore: Tripartite Implementation Group Launches Re-employment Web Portal

Singapore's Tripartite Implementation Workgroup (TIWG) has launched a web portal to help employers and employees get started on re-employment before the reemployment legislation takes effect in 2012. The portal can be found at www.re-employment.sg and it is intended to serve as a one-stop information and resource center for employers and employees on re-employment.

Among other things, the portal includes case studies of companies that have successfully implemented re-employment, lists seminars and workshops on re-employment, and provides information on assistance programs for companies that may require additional resources to implement re-employment. The portal also lists the workforce age profiles of over 250 companies from sectors such as hotels and restaurants, manufacturing and wholesale and retail trade; these companies have voluntarily posted their workforce age profiles on the portal in support of age-friendly and fair employment practices.

Source: Ministry of Manpower News Release (August 13, 2008)

Singapore: Unions Track Employer Commitments to Rehiring Older Workers

The National Trades Union Congress (NTUC) has established a four-tier framework to let unionized employers understand where they are in getting on track with respect to when Singapore's reemployment legislation kicks in come 2012. According to the NTUC, 433 out of the 1000 unionised companies have committed, at varying levels, with a total of 3910 older workers having been re-employed.

Under the NTUC's framework, a company can be categorized at on of four levels of commitment to reemployment:

• Level 1 refers to companies that are already reemploying older workers, but on an ad-hoc basis.
• Level 2 refers to companies that are already reemploying older workers and have a reemployment clause in their agreements with unions.
• Level 3 refers to companies that have a formalized HR policy on re-employment.
• Level 4 refers to companies that are pro-actively seeking out new initiatives to ensure that their re-employment efforts are sustainable and scalable.

Of the 433 companies committed to reemployment policies, 15% have in place a formalized HR policy, and the NTUC is working to encourage the other 85% to follow suit, so as to increase the proportion of companies at Levels 3 and 4.

Source: NTUC Press Release (May 13, 2008)

Singapore: Working Group Issues Advisory on Reemployment of Older Workers

Singapore's Tripartite Implementation Workgroup (TIWG) has released a Tripartite Advisory on the "Re-employment of Older Workers" to help companies adopt re-employment early, ahead of its legislation by 2012. The Singapore government is committed to enact re-employment legislation by then to enable more people to continue working beyond the current statutory retirement age of 62--initially, up to 65 and, later, up to 67.

The TIWG has drafted an Advisory that identifies good practices in areas such as pre-retirement planning and re-employment consultation, job arrangements upon re-employment and re-employment contract durations. The TIWG is soliciting feedback from companies implementing the Advisory.

Chairman of the TIWG and SNEF Council member Mr Alexander Melchers said, "Re-employment is a new concept for many employers. The advisory is meant to assist them, by offering practical suggestions to implement re-employment in their company."

In addition,

Mr Melchers added, "For re-employment to work, companies need to start reviewing and implementing changes to their HR systems and policies, including performance management and wage structures. Companies should do this as soon as possible, because this is not a process that can be accomplished overnight." He also said the re-employment of older workers was another way to tackle the increasing problem of a lack of skilled labour in Singapore

Sources: Ministry of Manpower Press Release (April 23, 2008); Today Online "For those over 62, the shape that re-employment deal could take: (April 24, 2008)

Singapore: Progress Reported on Enhanced Employability of Aging Population

Singapore's Ministerial Committee on Ageing (MCA) has released a report card on the work accomplished by the Singapore Government on ageing issues, including enhanced employability, one of the four previously-endorsed strategic thrusts. According to MCA, good progress has been made all fronts and further initiatives will be pursued in 2008.

With respect to employability, the report card shows that the employment rate of older residents aged 55 to 64 rose by 2.5% points over the year to 56.2% in June 2007, as a result of a buoyant economy and initiatives implemented. Following the May 2007 release of the final report of the Tripartite Committee on Employability of Older Workers, "more will be done to positively shape the mindsets of employers and employees towards employing older workers and to facilitate the re-design of jobs to make them more suited for older workers."

Source: Ministerial Committee on Ageing Media Release No. 03/2008 (January 15, 2008)

Singapore: Prime Minister Proposes Mandating Reemployment of Older Workers

In his National Day Rally speech, Singapore Prime Minister Lee Hsien Loong announced that he will be seeking legislation to require the reemployment of older workers. In addressing the best way for the government to help older workers to stay employed and work longer, the Prime Minister rejected calls for raising the retirement age of 62, since that would discourage employers from hiring older workers.

Accordingly, he called for legislation for reemployment to continue working beyond 62 ad being more flexible for both employers and employees. While a worker would not necessarily get the same job or the same pay, employers must make an offer, taking into account worker’s performance, health and preferences, and company’s needs.

As proposed, the law would take effect from 2012. It would require employers to offer reemployment to workers reaching retirement age, i.e. 62. As a first step, this would go up to 65 age and later would be pushed up to 67. In addition, the government will offer financial incentives for older people to work, and for employers to hire them.

Source: Singapore Government Media Release (August 19, 2007)

Other Sources: Channel NewsAsia "Firms facing Re-employment Act can stay cost-competitive" (August 23, 2007); Bernama.com "Singapore To Make Re-employment Of Older Workers Mandatory" (August 20, 2007)

Singapore: Tripartite Committee on Older Workers Releases Final Report

Singapore's Tripartite Committee on Employability of Older Worker has issued its final report, with an extensive package of recommendations to enhance the employability of older workers which have been accepted by the Government. These include introducing legislative changes within five years to facilitate opportunities for older workers to continue working beyond the age of 62, expanding the employment opportunities of older women and enhancing their employability, a higher Workfare Income Supplement payout to low income workers above the age of 55, and expanding the promotion of fair employment practices.

In addition, the Committee will continue its work for another five years. It will work towards raising the employment rate for residents aged 55 to 64 to the medium-term target of 65% (from the current 53.7%). The Committee will also work closely with the Ministerial Committee on Ageing to tackle the issues of an ageing population in a holistic manner.

The Committee's final report includes an Executive Summary and organizes its recommendations into four key strategic thrusts:

• Expand employment opportunities for older workers
• Enhance the cost competitiveness of older workers
• Raise skills and value of older workers
• Shape positive perceptions towards older workers

Source: Ministry of Manpower News Release (May 17, 2007)

Additional Sources: Channel NewsAsia "NTUC urges bosses not to wait for laws on employing older workers" (May 17, 2007)

Survey: Few Employers Are Taking Action to Recruit and Retain Older Workers; Manpower Offers Up Recommendations

According to a survey conducted for Manpower Inc. of more than 28,000 employers across 25 countries and territories, only 14% of employers worldwide have strategies in place to recruit older workers and only 21% have implemented retention strategies to keep them participating in the workforce.

The published results of the survey-- Older Worker Recruiting & Retention Survey--break down recruitment and retention by country and industry. Among different countries, employers in Japan and Singapore were far ahead of their international counterparts with 83% and 53% of employers surveyed, respectively, working proactively to retain their older employees; at the other extreme, in Italy and Spain, only 6% of employers had such strategies in place.

"Many employers have not yet recognized the need to forecast the percentage of their workforce that is set to retire in the next five to 10 years and planned ahead to stem the potential loss of productivity and intellectual capital that will occur when those people walk out the door," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "A surprisingly large number of organizations are still viewing upcoming retirements as cost- savings opportunities, but this is a dangerous and shortsighted view, as older adults will be relied upon as one of the most important sources of talent for the future workforce."

Simultaneously with the survey results, Manpower issued a white paper--"The New Agenda for an Older Workforce"--which explores the increasing reality of the global aging workforce, the resulting gaps in workforce supply, and the demand that this is creating. Among other things, the white paper proposes strategies that companies can adopt to circumvent these talent challenges; recommendations on how employers can help older employees extend their careers should they choose to do so; and suggestions for the role that governments can play to help solve the older worker conundrum.

Source: Manpower Inc. News Release (April 23, 2007)