With Singapore’s rapidly greying population, businesses here 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.
As of 2024, the median age of workers in Singapore is 45 years old. To put this into perspective, for every 25-year-old fresh graduate that is hired, there is likely 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 over a fifth of the population aged 65 and above, businesses must be prepared to hire older employees. On their part, workers have to be prepared to work more years – and potentially upgrade their skills for a longer career.
Overall, the employment rate for senior workers have also been on the rise in Singapore. Those aged 65 to 69 have an employment rate of 50.5%, while those aged 70 & over have an employment rate of 22.9%.
Mid-Career Employees Encouraged To Re-Skill After 40
Employers will also need to be ready for their mid-career employees to potentially take a career hiatus – 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.
The retirement age will then be aligned with the CPF LIFE payout eligibility age – or when members can start receiving CPF LIFE payouts.
Read Also: Increase In Retirement Age (Along With CPF Contributions): What Employers Need To Know
CPF Contributions For Senior Employees Increased In 2025
The workforce will not only age, but older workers have become more expensive. In 2025, senior employees who are 55 to 70 will contribute 1.5%-points more to 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.
During Budget 2025, the government has also committed to further raising the CPF contributions for older workers, between 55 and 65, by another 1.5%-points. Similarly, employees will contribute 1%-points more, while employers contribute 0.5%-points more.
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 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).
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
