Govt to extend wage subsidy for older workers till 2017

SINGAPORE — The Government will continue to provide employers with a wage subsidy for hiring older Singaporean workers till 2017, when the new re-employment age of 67 is expected to be implemented. This subsidy of up to 3 per cent, introduced during the Budget this year for employers hiring workers aged 65 and above and earning up to S$4,000 a month, was supposed to end on Dec 31 this year.

Announcing the extension today (Dec 1), the Ministry of Finance and the Ministry of Manpower (MOM) said the move was to show the Government’s “continued commitment and support” towards re-employment of older workers. Already, the Government has paid out over S$22 million to more than 49,000 employers who employed about 110,000 Singaporeans aged 65 and above in the first half of this year.

The announcement came as Manpower Minister Lim Swee Say yesterday expressed concern over the employment outlook for the first half of next year. Although the latest Singapore Workforce report showed a “string of positive news” , the job market has been changing “rapidly”. “For the rest of the year ... and the next year, we can expect greater uncertainty,” said Mr Lim during a visit to manufacturer of corrugated paper boxes TCG Rengo.

He added that businesses will find it “more challenging” to attract local workers in the next five years.

Mature workers are an “important source” of manpower, and the Government is determined to keep enhancing improving jobs to make them more “age-friendly”, he said.

The decision to raise re-employment age 67 was announced by Prime Minister Lee Hsien Loong during the National Day Rally. Currently, the law requires employers to offer workers re-employment up to age 65, from the time they turn 62.  

The 3 per cent wage subsidy for hiring workers aged 65 and older comes on top of the Special Employment Credit of up 8 per cent for hiring workers aged 50 and over, which the Government is giving out till Dec 31, 2016. 

National Trades Union Congress deputy secretary-general Heng Chee How said extending the 3 per cent subsidy will encourage employers to re-employ their older workers beyond the current re-employment age of 65. 

Mr Lim also noted that the Workforce Development Agency’s WorkPro scheme, which provides funding support for firms trying to make workplaces and jobs friendlier to mature workers among other things, is due for review. The scheme was to run till March. 

He said some companies have given feedback that as they tap other schemes to improve productivity, they also made jobs age-friendly. “So we decided that, starting from next year as we review the WorkPro … instead of having companies decide which scheme to apply for, we are going to find ways to complement WorkPro with the other schemes,” he said.