Public Sector Employees Offered Re-employment

Mr Chen Show Mao asked the Prime Minister (a) what percentage of employees in the public sector reaching employment age are offered re-employment in 2010, 2011 and 2012 respectively; (b) in each of those years, how many employees in the public sector are re-employed at their last-drawn salaries while doing the same jobs; (c) of those re-employed employees who have their salaries reduced, what is the average percentage of reduction; and (d) whether the recent findings by the National Trades Union Congress on re-employment practices in the public and private sectors provide sufficient basis for the Government to revise its re-employment practices.

Mr Teo Chee Hean (for the Prime Minister): The percentage of public sector employees offered re-employment has increased from 76% in 2010 to 89% for the one-and-a-half-year period following the implementation of the Public Service re-employment guidelines on 1 July 2011.

Some officers preferred not to continue working. The percentage of officers who were successfully re-employed also increased from 64% to 83% of the retiring cohort across the same period.

Amongst the re-employed officers, 82% continued on the same substantive grade, with 11% of those at the same grade re-employed at their last drawn salaries. The majority had their salaries adjusted to the mid-point of their salary range, which is aligned to the Tripartite Guidelines on Re-employment of Older Employees, released on 11 January 2011. The average salary adjustment was about 13%.

I told the House in this year's Committee of Supply that PSD would review our re-employment guidelines. We have since announced on 29 July 2013, the changes that have taken effect from 1 August 2013. With the revised guidelines, all Division III and IV officers offered re-employment will be re-employed at the same substantive grade with their last drawn salaries. For Division I and II officers, more officers who are re-employed at the same substantive grade will continue with their last drawn salaries, and for those whose salaries are to be adjusted, the adjustment is capped at 15%. The Public Service will continue to offer fair re-employment terms to our officers that are reflective of market practice.