More flexible jobs, higher tax relief among measures to help older workers stay employed

Singapore will raise its statutory retirement age from 64 to 65 and its re-employment age from 69 to 70. The changes will take effect in 2029, instead of the earlier 2030 timeline. The government fully accepted these recommendations from the Tripartite Workgroup on Senior Employment.

The two increases work together. Employers cannot dismiss employees because of age before they reach 65. They must also offer re-employment to eligible employees until those employees turn 70. This gives older workers clearer protection and more time to remain economically active.

The policy is intended for seniors who want to continue working, not to force everyone to stay employed. The tripartite partners also proposed flexible jobs, wage support and higher assistance for workers who are not re-employed. Implementation details are expected in the first half of 2027.

A statutory retirement age is the age before which an employer cannot dismiss an employee solely because of age. A statutory re-employment age is later: it marks the point until which employers must offer eligible employees continued work, subject to the rules. The two ages therefore provide different forms of protection.

Under the announced changes, employers cannot dismiss employees on age grounds before 65. They must offer re-employment to eligible employees until 70. This means a worker may reach the retirement-age threshold yet still receive an opportunity to continue working through re-employment.

Singapore’s current limits are 64 and 69. Both will rise in 2029, one year earlier than previously planned. The distinction matters because it gives older workers assurance at two stages: protection from early age-based dismissal, followed by an opportunity to keep working longer.

The higher limits create clearer duties for employers. Before a worker turns 65, an employer cannot dismiss that employee because of age. After that point, the employer must offer re-employment to eligible employees until they turn 70. The changes strengthen the formal opportunity to remain employed.

For example, an older worker approaching 65 could continue under the re-employment framework rather than simply leaving the workforce. Other measures may make that continuation more practical, including flexible jobs, wage support for employers and higher support for lower-wage senior workers. Financial assistance will also increase for people who are not re-employed.

The effect depends on both worker choice and eligibility. The policy does not say every senior must keep working. It gives those who wish to continue a longer pathway, while encouraging employers to redesign jobs and provide flexible arrangements. Implementation details will follow in the first half of 2027.

Singapore’s workforce is ageing alongside the wider population. Workers aged 50 and above accounted for about 40 per cent of the labour force in 2025. That was up from around 34 per cent in 2015. The figures show that older workers already form a large and growing part of working life.

The change is also visible in the population. The workgroup expects ageing to further increase the share of seniors in the labour force. By 2030, one in four Singaporeans will be aged 65 and above. This creates a stronger need for jobs and workplace practices that can include people across longer careers.

The article also notes that labour force participation drops sharply among residents in their late 50s and older. Tripartite measures therefore focus on flexible work, career planning, training and re-employment. Together, these efforts aim to help older workers stay connected to work when they want to.

The Flexi-Load Programme is a new scheme to help employers create and expand jobs with flexible workloads for older workers. It will replace the Part-time Re-employment Grant after 2027. Unlike the existing grant, which covers workers aged 60 and above, the new programme covers workers aged 50 and above.

Flexible roles can include part-time or fractional work, while project-based opportunities can match workers with specific assignments. Job redesign can also change how work is organised. The key mechanism is employer support tied to the outcome of creating additional flexi-load roles, rather than simply making an offer.

A new programme office for career longevity will help workers plan career and skills transitions. It will also support employers with structured career planning and flexible workloads. These options may help people remain employed when standard full-time work is less suitable, while allowing employers to retain experience.

Caregiving responsibilities matter because they can keep workers in their 50s and older out of work or from looking for work. Government surveys identified caregiving as the top reason these workers are not working or seeking employment. This points to a practical barrier, not simply a lack of interest in having a job.

Flexible work arrangements address that barrier by allowing work to fit alongside other responsibilities. The article identifies them as the top initiative that could keep these workers in the workforce. Part-time, fractional and project-based roles are examples of more adaptable arrangements being considered.

This link helps explain why the tripartite measures go beyond raising age limits. The Flexi-Load Programme will support employers that create flexible-load roles, while a programme office will help with career planning and transitions. Together, they aim to give older workers genuine options instead of treating continued employment as only full-time work.

Population ageing makes older workers increasingly important to Singapore’s workforce. People aged 50 and above already made up about 40 per cent of the labour force in 2025. By 2030, one in four Singaporeans is expected to be aged 65 and above. A larger senior population means employers must plan for longer careers.

The article describes retaining older employees as a business necessity amid a tight labour market and slowing workforce growth. Employers can redesign jobs and offer flexible arrangements, including full-time and part-time roles. These approaches can help retain valuable experience and build multi-generational teams.

The wider economy also needs ways for willing seniors to keep contributing. Labour force participation drops sharply among residents in their late 50s and older, while caregiving is a major barrier. Higher age limits, training, career planning and flexible workloads are intended to keep more people connected to work when they choose.