In light of the aging population, the Government has amended the Retirement Act to help keep mature workers employable.

Who Is Covered Under The Retirement Act?

• All employees who are Singapore Citizens or Permanent Residents.

• It does not cover any of these employees:

• Employees hired for fixed-term projects.
• Employees serving apprenticeship. 
• Employees already covered by another retirement benefit scheme before 1 July 1993.

What Protection Is Given To Mature Workers?

• No employee, below the retirement age, can be dismissed on the grounds of age.

• The retirement age in Singapore is 62.

• An employee who is unfairly dismissed can sue the employer under common law or write to the Minister of Manpower within one month to reinstate his/her job.

How Does The Retirement Age Act Help Employers?

• The Act gives employers the discretion to reduce the wages of employees who have reached age 60 by 10%.

• However, employers must make sure:

• the wage cut is reasonable taking into consideration the employer's productivity, performance, duties, responsibilities, etc.

• notice of the wage cut is given in advance in writing

• the employee has time to respond to the wage cut proposed

• If employer and employee cannot agree on the wage cut proposed, then either party can ask for retirement.