Singapore will raise its statutory retirement age to 65 and the re-employment age to 70 from January 1, 2029, bringing forward the planned changes by one year.
The Government aims to help older employees remain in the workforce through flexible work arrangements, job redesign and enhanced employment support.
The changes will take effect one year ahead of the original target, according to the Tripartite Workgroup on Senior Employment, which announced the measures on October 26.
The Government has accepted all six recommendations made by the workgroup, which was established in July 2025 to review the country's strategy for senior employment.
“This gives senior workers greater assurance that they can continue working if they wish to,” the workgroup said.
The retirement age was raised to 64 in July, while the re-employment age increased to 69.
Singapore to expand flexible work for older employees
A key recommendation is the introduction of a new flexi-load programme to help employers offer roles with adjustable workloads and corresponding changes in remuneration.
The initiative is intended to give older employees more options to continue working without having to remain in conventional full-time roles.
Dinesh Vasu Dash, Minister of State for Manpower said, “For some seniors, this may mean continuing in the same job for longer. For others, it may mean moving into a different role, working at a different pace or adjusting work around changing personal circumstances.”
“What matters is that seniors who wish to continue working have meaningful options to do so,” he said.
Ministry of Manpower data from 2024 showed that 85.5% of full-time resident employees aged 50 to 64 were offered flexible working hours, while 78.7% had access to flexible work locations. However, only 74.5% were offered flexible workload arrangements.
The new programme will replace the part-time employment grant, which has supported approximately 68,500 senior workers and 7,800 employers.
A dedicated programme office, led by the Skills and Workforce Development Agency in collaboration with the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF), will help employers develop and implement flexible workload arrangements.
The workgroup also recommended job fractionalisation, which involves breaking conventional jobs into smaller roles that can be matched to the skills and availability of senior workers.
For example, social service organisation Kampong Kapor Community Services worked with consulting firm Mercer to develop session-based and case-based roles for experienced workers who may no longer find traditional full-time employment suitable.
New incentives to encourage senior employment
The recommendations also include financial measures to encourage older employees to remain in work and help employers retain experienced talent.
The workgroup proposed enhancing earned income tax relief for senior workers who continue working beyond the statutory retirement and re-employment ages. The move is intended to increase take-home pay and encourage longer workforce participation.
It also recommended updating the minimum and maximum Employment Assistance Payment amounts.
Employers are required to make this payment as a last resort when they cannot find a suitable position for an eligible employee reaching the re-employment age.
In addition, the workgroup proposed replacing the Senior Employment Credit, which expires at the end of 2027, with a new Re-Employment Credit from 2028.
The existing scheme provides wage offsets of up to 7% to employers hiring Singaporeans aged 60 and above who earn below S$4,000 a month.
The workgroup further recommended enhancing the Workfare Income Supplement and updating the Progressive Wage Credit Scheme to support wage growth and improve retirement adequacy among lower-wage senior workers.
These measures are intended to help older employees remain financially secure while providing employers with greater support to raise wages sustainably.
Employers urged to prepare for an ageing workforce
Alongside policy and financial support, the workgroup emphasised the importance of skills development and early career planning to help senior workers adapt to changing job requirements.
NTUC deputy secretary-general Desmond Tan said the priority was to give older employees choice, assurance and dignity. He also stressed that workers should take responsibility for their career readiness by planning ahead and keeping their skills current.
The recommendations follow consultations with more than 1,000 stakeholders, including employers, workers, union representatives, HR professionals and academics, as well as overseas study trips.
Further details on implementation and grant parameters are expected in the first half of 2027, when the Ministry of Manpower presents its budget plans during the Government's Committee of Supply.
The changes place greater emphasis on age-inclusive workforce planning, with employers expected to consider how job design, flexible workloads and skills development can help experienced employees remain productive for longer.