By RAMESH SUBBARAMAN
The Tripartite Committee on Employability of Older Workers (Tricom) has recommended that the Government adopt a promotional approach towards raising the re-employment age from the current 65 to 67 years old.
It is also recommending that the government provide incentives to encourage companies to re-employ their older workers beyond 65 years old in the interim, before legislation kicks in.
The Tricom, which comprises representatives from the unions, employers and the Government, has also issued a Tripartite Advisory on Re-employment of Employees from Age 65 to 67 to guide employers who voluntarily re-employ their older workers beyond 65.
Better Retirement
Tricom member and NTUC President Diana Chia said: “The Labour Movement believes that the best way to help older workers provide better for retirement is to help those who can and want to continue working to do so Our unions will work closely with unionised companies toward raising the re-employment age ceiling from 65 to 67 in a win-win manner ahead of the legislation. In a tight labour market where the availability of foreign manpower will continue to be stringently managed, companies that retain and make full use of their existing manpower will enjoy an advantage over their competitors.”
Time To Adjust
The government has accepted the TriCom’s recommendations. Manpower Minister Tan Chuan-Jin said starting with promotion is not a new approach when it comes to the issue of re-employing older workers.
He explained: “We are taking the same approach as when we first introduced the requirement for companies to re-employ workers till 65 in 2012.
“We are allowing companies adequate time to adjust before legislating, and will provide incentives for employers who voluntarily re-employ older workers beyond 65 ahead of it being legislated.”
Incentive Package
Mr Tan said the employment rate for older workers has steadily increased over the years, from 57% in 2009 to 65% in 2013.
Last year, 99% of private sector local employees who turned 62 were offered re-employment.
MOM is working with the tripartite partners and the Ministry of Finance on an incentive package to be announced early next year and made effective from 1 January 2015.
Source: NTUC ThisWeek
