Resource

Re-employment Act in Singapore: Re-employment Age to Increase to 69 from 1 July 2026

From 1 July 2026, the statutory re-employment age will increase from 68 to 69 years, with a further increase to 70 years planned by 2030.

This change forms part of Singapore’s long-term manpower strategy to support longer working lives and safeguard older workers who are able and willing to continue working.

Retirement Age and Re-employment Age Timeline

What the Retirement and Re-employment Act Requires

Under the Retirement and Re-employment Act (RRA), employers must offer re-employment to eligible employees who turn 63 years old, so they may continue working beyond the retirement age, instead of having their employment end solely due to age.

Re-employment is usually offered on fixed-term contracts, renewable annually, up to the statutory re-employment age.

Employee Eligibility for Re-employment

An employee is eligible for re-employment if all the following conditions are met:

• The employee is a Singapore Citizen or Singapore Permanent Resident
• The employee has served the current employer for at least 2 years (For employees hired at age 55 and above, the 2 years of service must be completed before turning 63)
• The employee has satisfactory work performance, as assessed by the employer
• The employee is medically fit to continue working

Re-employment Contract Requirements

Employers should:

• Begin re-employment discussions at least 6 months before the employee turns 63
• Discuss contract extensions 6 months before contract end and offer extensions at least 3 months in advance
• Offer re-employment contracts for a minimum of 1 year, renewable annually up to the maximum re-employment age
• Inform employees early if they do not qualify for re-employment, so they can better prepare for retirement or seek other employment opportunities
• Reward re-employed employees based on business and individual performance, in line with Tripartite Guidelines

With the upcoming change, re-employment obligations will extend up to age 69 from 1 July 2026, and eventually 70.

If an Employee is Eligible but Employer Cannot Offer Re-employment

If an employee is eligible for re-employment but the employer is genuinely unable to offer a suitable position, the employer must either:

• Transfer the re-employment obligation to another employer, with the employee’s agreement, or
• Offer a one-off Employment Assistance Payment (EAP)

Employment Assistance Payment (EAP)

The EAP is:

• Offered only after a thorough review, as a last resort
• Intended to help the employee while seeking alternative employment
• 3.5 months’ salary, with a minimum of $6,250 and a maximum of $14,750

For employees who have been re-employed for at least 30 months since age 63, a lower EAP may apply:

• 2 months’ salary, with a minimum of $4,000 and a maximum of $8,500

In addition to EAP, employers are also encouraged to provide outplacement assistance to help employees find alternative employment.

Managing Re-employment Effectively

Find out how your company can manage this extension of re-employment efficiently, while preparing to harness the trend of an aging workforce.

Talk to us to see a demo on how WhyzeHR can help you to automate reminders, streamline performance appraisals, record medical assessment, and manage re-employment contracts.