Retirement and Re-employment Act (Singapore)
Singapore legislation that prohibits employers from dismissing employees on grounds of age before the minimum retirement age of 63, and requires employers to offer re-employment to eligible employees up to the re-employment age of 68, with both ages set to increase to 65 and 70 respectively by 2030.
- What Is the Retirement and Re-employment Act (RRA)?
- Eligibility for Re-employment
- The Re-employment Process
- Changing Employment Terms Upon Re-employment
- Planned Increases to Retirement and Re-employment Ages
- Employer Compliance Obligations
- Handling RRA Disputes
- Older Workers in Singapore: Key Statistics [2026]
- Best Practices for Managing an Aging Workforce
- Frequently Asked Questions About the Retirement and Re-employment Act
What Is the Retirement and Re-employment Act (RRA)?
Key Takeaways
- ✓The RRA sets a minimum retirement age of 63 in Singapore. No employer can dismiss an employee or force them to retire before this age on grounds of age alone.
- ✓Employers must offer re-employment to eligible employees who turn 63, extending their employment up to the re-employment age of 68. The offer must be made at least 6 months before the employee turns 63.
- ✓The government plans to raise the retirement age to 65 and the re-employment age to 70 by 2030, with increases happening in phases.
- ✓If an employer can't offer re-employment in the same company, they must either transfer the employee to an associated company or pay a one-time Employment Assistance Payment (EAP) of at least S$6,250 (or S$8,250 for those born on or after 1 July 1957).
- ✓The Act applies to all employees covered under the Employment Act, including foreign employees, who have served the employer for at least 2 years before turning 63.
Singapore is aging fast. By 2030, nearly one in four residents will be 65 or older. The Retirement and Re-employment Act is the government's legislative response to this demographic shift. It keeps older workers in the labor force longer while giving employers some flexibility in how they manage aging workforces. The law works in two stages. First, it prevents employers from pushing workers out before age 63. You simply can't dismiss or force retirement on someone just because they've hit a certain age. Second, it requires employers to actively offer continued employment to eligible workers until age 68. This isn't a suggestion. It's a legal obligation with real consequences for non-compliance. The Act reflects a broader social compact in Singapore: people are living longer and healthier lives, the retirement savings system (CPF) is designed for a longer accumulation period, and the economy benefits from experienced workers staying productive. For HR teams, the RRA creates planning obligations around re-employment offers, contract restructuring, and workforce design for an aging employee base.
Eligibility for Re-employment
Not every employee who reaches 63 is automatically entitled to re-employment. The Act sets specific eligibility criteria.
Who qualifies
An employee is eligible for re-employment if they are a Singapore citizen or permanent resident (or a foreign employee covered by the Employment Act), have served the employer for at least 2 years before turning 63, are assessed by the employer as medically fit to continue working, and have satisfactory work performance as assessed by the employer. The 2-year service requirement prevents short-tenure employees from claiming re-employment rights with employers they barely worked for.
Who doesn't qualify
Employees who don't meet the medical fitness or satisfactory performance criteria can be excluded from re-employment. However, employers must be able to justify these assessments if challenged. Using performance criteria as a pretext for age discrimination will be flagged by MOM. Employees who were already on fixed-term contracts that expire at the retirement age are also excluded, though MOM discourages employers from using fixed-term contracts to circumvent re-employment obligations.
The Re-employment Process
Employers must follow a specific timeline and process when an employee approaches the retirement age.
Timeline and offer requirements
Employers must offer re-employment at least 6 months before the employee turns 63. The offer should be in writing and clearly set out the terms and conditions of re-employment. Re-employment can be on the same terms as the existing contract, or on varied terms that are reasonable. The employer can offer a different role, different working hours, or different pay, but the overall package must be reasonable. What counts as "reasonable" is assessed by looking at the employee's last drawn salary, productivity, performance, and the norms for the industry and job.
When the employer can't offer re-employment
If an employer genuinely can't offer re-employment (for example, due to restructuring or the role being eliminated), they must either find a position with an associated company (a subsidiary, parent, or sister company) or pay the Employment Assistance Payment (EAP). The minimum EAP is S$6,250 for employees born before 1 July 1957, and S$8,250 for those born on or after that date. The Tripartite Guidelines recommend higher EAP amounts: 3.5 months of salary for employees born on or after 1 July 1957.
Contract duration and renewals
Re-employment contracts can be for a fixed term of at least one year, or on an open-ended basis. If the employer offers a fixed-term contract, it must be renewed annually until the employee reaches the re-employment age of 68, unless there are legitimate grounds for non-renewal. Each renewal follows the same process: assess eligibility, make the offer, and document the terms.
Changing Employment Terms Upon Re-employment
Employers aren't required to offer the exact same job at the exact same pay. The Act allows for reasonable adjustments.
What can be changed
Job scope, responsibilities, working hours, and remuneration can all be adjusted for the re-employment contract. An employer might offer a senior manager a re-employment role as an advisor with reduced hours and adjusted pay. The key test is reasonableness. MOM and the Tripartite Guidelines suggest that employers should try to keep re-employment terms as close to the original as possible, and any reductions should reflect genuine changes in job scope or hours, not arbitrary pay cuts.
CPF contribution changes
CPF contribution rates decrease for employees aged 55 and above, with further reductions at ages 60, 65, and 70. Both employer and employee contribution rates drop. For employees aged 63 to 65, the employer contribution rate is 11.5% (compared to 17% for those below 55) and the employee rate is 13% (compared to 20%). These lower CPF rates already reduce total compensation costs for older workers. Employers shouldn't use CPF savings as an additional justification for cutting base pay during re-employment.
Planned Increases to Retirement and Re-employment Ages
The government has committed to raising both ages incrementally to account for increasing life expectancy.
| Effective Date | Minimum Retirement Age | Re-employment Age | Status |
|---|---|---|---|
| Before July 2017 | 62 | 65 | Completed |
| July 2017 | 62 | 67 | Completed |
| July 2022 | 63 | 68 | Current |
| By 2026-2027 (expected) | 64 | 69 | Planned |
| By 2030 | 65 | 70 | Government target |
Employer Compliance Obligations
HR teams need to build the RRA into their workforce planning processes. Here are the practical compliance steps.
- Maintain an age tracker for all employees approaching 63. Set alerts at the 12-month and 6-month marks to ensure timely re-employment offers.
- Issue re-employment offers in writing at least 6 months before the employee's 63rd birthday. Document all discussions about terms and any counter-proposals.
- If adjusting terms for re-employment, document the business rationale. "We always cut pay by 30% for re-employed workers" isn't a defensible approach. Changes should reflect genuine adjustments in scope, hours, or responsibilities.
- If re-employment can't be offered, explore transfer options to associated companies before resorting to the EAP. MOM expects employers to make genuine efforts to find positions.
- Keep records of all re-employment decisions, including eligibility assessments (medical fitness, performance evaluations), offers made, terms accepted or rejected, and EAP payments.
- Update employment contracts and HR policies to reflect the current retirement and re-employment ages, especially as these increase.
Handling RRA Disputes
Disagreements over re-employment terms or eligibility are resolved through TADM mediation, similar to other employment disputes.
Common dispute areas
The most frequent disputes involve the reasonableness of re-employment terms (especially pay reductions), whether the employer genuinely can't offer re-employment, the amount of the EAP, and disputes over performance or medical fitness assessments used to deny re-employment. Employees who believe they've been unfairly denied re-employment or offered unreasonable terms can file a complaint with MOM or seek mediation at TADM.
Penalties for non-compliance
Employers who dismiss employees on grounds of age before the retirement age commit an offence. Penalties include fines of up to S$5,000 for a first offence and S$10,000 for subsequent offences. Employers who fail to offer re-employment without legitimate justification or refuse to pay the EAP also face enforcement action. MOM can order reinstatement, compensation, or EAP payment. Beyond legal penalties, non-compliance puts a company on MOM's radar for closer scrutiny of all employment practices.
Older Workers in Singapore: Key Statistics [2026]
Data showing why the RRA is increasingly important for Singapore's workforce.
Best Practices for Managing an Aging Workforce
The RRA sets the legal minimum. Forward-thinking employers go beyond compliance to retain valuable institutional knowledge.
- Start re-employment planning conversations well before the 6-month deadline. Many employees appreciate being asked about their preferences and having input into their re-employment terms.
- Design phased retirement programs that gradually reduce hours and responsibilities rather than abruptly changing roles at age 63. This creates a smoother transition and better knowledge transfer.
- Invest in skills upgrading for older workers. The government offers generous subsidies through SkillsFuture for workers aged 40+. Reskilled older workers are more versatile and easier to re-deploy.
- Review workplace ergonomics and job design for physically demanding roles. Modifying workstations, offering flexible hours, or reassigning to less physical tasks helps retain workers who are otherwise fit and productive.
- Use older workers as mentors and trainers for junior staff. This creates value for the organization while giving re-employed workers meaningful roles.
- Don't treat re-employment as a legal obligation to be minimized. Companies that retain experienced workers build stronger institutional knowledge and often have lower overall recruitment costs.
Frequently Asked Questions
Can an employer offer a lower salary for the re-employment contract?
Does the RRA apply to foreign employees?
What if the employee rejects the re-employment offer?
Can an employee be re-employed beyond age 68?
What is the Employment Assistance Payment (EAP)?
How does the RRA interact with retrenchment?
Written by Adithyan RK