Breakdown of Employees Re-employed Upon Reaching Statutory Retirement Age by Industry and Job and Salary Levels

Mr Abdul Samad asked the Minister for Manpower with regard to eligible workers who were not offered re-employment after reaching the statutory minimum retirement age in the past five years (a) what is the breakdown of the sector or industry that the workers were in; and (b) what is the profile of these workers, such as their position as professionals, managers and executives as against a rank and file worker.

Mr Abdul Samad asked the Minister for Manpower (a) with regard to workers who turned 62 years old, what is the proportion of these workers who have been offered re-employment for each year in the past five years; (b) of these workers who had accepted re-employment, whether there was any reduction in their salary or benefits and, if so, what is the average reduction in their salary or benefit; and (c) how many instances are there where the contract of the re-employed workers have been terminated mid-way.

Dr Tan See Leng: Each year, over 90% of eligible resident employees 1 who wished to continue working were offered re-employment at age 62. Of those who accepted re-employment, nearly all continued in the same job, either on their existing contracts without a specific end date, or a shorter renewable contract. The rest were re-employed in a different job. Amongst those re-employed in the same job, more than 95% did not experience any cuts to basic wage and benefits. The 5% who experienced wage cuts saw a median decrease of about 10%.

The incidence of non-offer was highest in financial and insurance services, information and communications, and manufacturing. Where re-employment is not offered, employers are required to pay an Employment Assistance Payment to help the workers tide over while they find new employment.

Note(s) to Question No(s) 106-107:

1 Refers to eligible private sector resident employees.