With Singapore’s rapidly greying population, businesses in Singapore will inevitably find themselves hiring more senior employees. Employers need to be prepared not just to hire and manage older workers, but also train them – so they remain relevant in the workforce.
Today, the median age of workers in Singapore is 44 years old. To put this into perspective, for every 23-year-old fresh graduate that is hired, there is a 65-year-old employee in the workforce.
Singapore Has A Rapidly Ageing Population
In 2010, only 1 in 10 Singaporeans were aged 65 and above; in 2020, 1 in 6 Singaporeans were 65 and above. By 2030, 1 in 4 Singaporeans will be 65 and above.
With a quarter of the population aged 65 and above, businesses must be prepared to hire older employees. On their part, workers have to be prepared to worker longer – and potentially upgrade their skills for a longer career.
Overall, the employment rate for senior workers have also been on the rise in Singapore.
Mid-Career Employees Encouraged To Re-Skill After 40
Employers will also need to be ready for their mid-career employers to potentially leave the workforce – to reskill themselves – after the age of 40. Logically, this will serve to extend the shelf-life of a Singaporean worker beyond their retirement age.
Announced during Budget 2024, the government will give Singaporeans aged 40 and above a $4,000 SkillsFuture top-up – under the SkillsFuture Level-Up programme. This is primarily for selected full-time, part-time and undergraduate programmes, as well as for courses under the Progressive Wage Model sectors.
In line with this, the government will also allow Singaporeans aged 40 and above to receive another round of subsidised full-time diploma at Polytechnics, ITE, and Arts Institutions from Academic Year 2025 onwards.
Beyond making it more affordable to re-skill themselves, the government will also provide a monthly training allowance worth 50% of their income (capped at $3,000 per month for up to 24 months).
Retirement And Re-Employment Age Will Rise In 2026
To pre-empt this, the government will raise the Retirement Age to 64 and the Re-employment Age to 69 in July 2026. The target is to increase the Retirement Age to 65 and the Re-employment Age to 70 by 2030.
Read Also: Increase In Retirement Age (Along With CPF Contributions): What Employers Need To Know
CPF Contributions For Senior Employees Will Increase In 2025
The workforce will not only age, but also become more expensive. In 2025, senior employees who are 55 to 70 will contribute 1.5%-points more their CPF accounts. Employees will contribute 1%-point more, while employers also have to play their part by contributing 0.5%-points more.
To cushion higher costs, the government will extend a CPF Offset Transition package worth half of the increase in Employers’ CPF contributions for 1 year. This means employers will get a subsidy of 0.25%-points in 2025.
Senior Employment Credit (SEC) Will Subsidise Senior Employees’ Salaries
Low-skilled senior employees are most vulnerable to losing their jobs. Besides encouraging employer and employees to adopt lifelong learning, the government also subsidises employers to keep their low-wage senior employees (aged 60 and above) earning up to $4,000.
The Senior Employment Credit (SEC) subsidises between 2% and 7% of employers’ senior employees’ salaries in 2024 and 2025.
Read Also: Guide To Senior Employment Credit (SEC) Payouts For Employers Hiring Older Workers In Singapore
Job Re-Design Subsidy
Various government subsidies can help employers relook their hiring practices and make their jobs more attractive for senior employees. One of these programmes is the Job Redesign grant under the Productivity Solutions Grant (PSG).
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