Debated in Parliament on 21 Oct 2013.
Ms Tan Su Shan asked the Acting Minister for Manpower whether the Government will consider introducing a top-up option to the Special Employment Credit scheme which is age-based so as to broaden the reach of incentives for the recruitment and retention of well-qualified elder Singaporean workers.
The Special Employment Credit (SEC) is one of the measures in place to encourage employment amongst older Singaporeans. Employers receive an SEC of up to 8% of each eligible employee's monthly wage. It was initially targeted at workers aged above 55, earning up to $1,700 per month, and was recently enhanced in 2012 to cover those aged above 50, with wages of up to $4,000 per month.
Ms Tan Su Shan has asked if the SEC could be enhanced further through an age-based top-up that provides greater support for elder Singaporean
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workers. We will study this proposal further. However, we note that, currently, employers' CPF contribution rates already get progressively lower as the age of the employee increases.8 The age-based tiering of CPF contribution rates helps to offset the cost of employing older workers, particularly for those above 60.
In addition, the SEC should be seen as part of a suite of measures that are in place to facilitate the retention of older workers, including WorkPro, which provides funding for work redesign, and the introduction of legislation that now requires employers to offer re-employment to eligible resident employees who turn 62, up to 65 years old.
The labour force participation rate of older residents has been increasing amid the tight labour market and measures to improve their employability. Fifty-six percent of residents aged 60 to 64 were employed in 2012, up from 45% in 2007. Thirty-seven percent of residents aged 65 to 69 were employed in 2012, up from 26% in 2007. Nearly all (98%) private sector local employees who turned 62 in the year ending June 2012 were offered re-employment.
We will continue to monitor labour market developments and refine our policies to promote the hiring of older Singaporean workers.
PAPERCUTS