Government to Implement Six Workgroup Recommendations to Support Senior Workers

Singapore’s aging population has led to pressing concerns about its impact on the workforce. Singapore became a super-aged society in 2026, with citizens aged 65 and above making up 21.4% of the population, and projected to surpass 25% by 2035, according to the Singapore Department of Statistics. To address labour shortages and support seniors who want to continue their employment for financial security or personal purposes, Singapore has been looking towards structural, legislative, and financial measures.

As part of these efforts, on 26 October 2026, the Tripartite Workgroup on Senior Employment (“TWG-SE“) released its report setting out six recommendations to help more seniors remain in meaningful and sustainable employment for longer if they so choose, while fostering age-friendly and multi-generational workplaces. The recommendations include (i) bringing forward the raise in the retirement and re-employment ages a year ahead of time; (ii) scaling up flexi-load opportunities; and (iii) providing more funding support for employers by way of the new Flexi-Load Programme and Re-employment Credit, as well as enhancements to the Progressive Wage Credit Scheme (“PWCS“).

The Government has accepted all six recommendations, with further details to be released in the first half of 2027.

Six Recommendations

The recommendations are organised around three policy thrusts, as follows:

(A) Reducing Premature Exits and Facilitating Re-entry of Workers 

1. Scale up flexible roles and career guidance for seniors by:

• • Introducing a new Flexi-Load Programme (“FLP”) that supports employers to scale up flexi-load opportunities for senior workers and jobseekers. This enables such workers and jobseekers to balance employment with caregiving responsibilities, health considerations and other commitments.
    • The FLP will help employers defray transitional costs of implementing flexi-load arrangements, such as job redesign. It will be available to employees aged 50 and above, and funds employers to demonstrate the outcome of creating additional flexi-load roles.
    • It will replace the Part-Time Re-employment Grant (“PTRG“), which expires in end-2027. The PTRG is limited to employees aged 60 and above, and funds employers who make changes to their human resources (HR) policies.
  • Establishing a new programme office for career longevity, led by the Skills and Workforce Development Agency (SWDA). The programme office will help employers develop age-inclusive workplace practices and longer career pathways, while strengthening career planning, skills development, and career transition support for workers.

The Jobseeker Support Scheme will also be reviewed to provide support for senior workers navigating job transitions.

(B) Extending Careers Beyond Statutory Re-employment 

2. Raise the retirement and re-employment ages to 65 and 70, respectively, on 1 January 2029, ahead of the original date of 1 January 2030. This enables more senior workers to continue working if they wish to.

3. Introduce a new Re-employment Credit that provides more support to employers who hire and retain senior workers above the retirement and re-employment ages. This will replace the Senior Employment Credit, which expires in end-2027, and provide wage offsets to employers who hire and retain senior workers.

4. Raise Employment Assistance Payments (EAP), which supports eligible employees who wish to continue working but are not offered re-employment. The raise accounts for wage growth since the last review in 2022.

5. Enhance the Earned Income Relief (EIR) for seniors who wish to work beyond the retirement and re-employment ages. This reduces their tax burden and incentivises them to remain in the workforce.

(C) Uplifting Lower-wage Senior Workers 

6. Enhance the Workfare Income Supplement (“WIS”) and update the PWCS. The WIS supplements income and boosts Central Provident Fund savings for lower-wage workers, with older workers receiving higher payments. The PWCS co-funds wage increases, supporting employers in raising wages for lower-wage workers. 

What These Recommendations Mean for Employers

Senior workers are becoming increasingly important as part of the employment ecosystem, and the Government has intimated that it will continue to develop and implement policies that seek to protect and facilitate an older workforce. 

The recommendations set out by the TWG-SE thus aim to promote career resilience, employability and workforce participation at every life stage through earlier, more proactive support, while empowering workers to navigate career transitions with greater confidence and purpose.

From an employer perspective, these measures to support the retention of senior workers will enable employers to tap on the experience, expertise and institutional knowledge of senior workers, strengthening business resilience, productivity and competitiveness.

The Government’s efforts in this respect are complemented by initiatives supporting other workforce segments, such as those being developed under the Tripartite Workgroup on Employment Act Review and the Marriage & Parenthood Reset Workgroup. Even as businesses face tighter manpower restraints and rapid technological changes, these initiatives aim to build a more inclusive, resilient and future-ready workforce in Singapore.

While the above recommendations and initiatives are geared towards supporting senior workers and employers (with regard to their employment of senior workers), employers should also be aware of the more substantive obligations in Singapore’s regulatory framework, such as the statutory re-employment obligations towards employees over the age of retirement under the Retirement and Re-employment Act 1993. Unlawful dismissal or unreasonable denial of re-employment may lead to Ministry of Manpower-ordered compensation or re-employment, and the failure to comply with such orders may even lead to fines or imprisonment.

Click the following link for more information:

• MOM Press Release titled “Tripartite Workgroup Recommends Six Measures to Build Age-Friendly Jobs and Multi-Generational Workplaces” (available on the MOM website at mom.gov.sg)

If you have any queries on the above, please reach out to our team set out on this page.

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