In his 2025 Budget statement in Parliament, Prime Minister (PM) Lawrence Wong stated clearly that the goal of the government was to “work with employers to tap on the experience and wisdom of seniors who are able and wish to continue working”.
As such, he revealed plans to extend the Senior Employment Credit (SEC) by a year till 31 Dec 2026. The scheme helps to defray wage costs that employers bear for hiring Singaporeans aged 60 and above earning less than $4,000 a month.
The CPF Transition Offset (CTO), which will offset half of the 2026 increase in employer CPF contributions, will also be extended by another year. The offset will be provided automatically with no application from employers required.
In addition, the Ministry of Manpower (MOM) will set up a Tripartite Workgroup on Senior Employment. PM Wong said: “The workgroup will undertake a holistic and longer-term review of senior employment policies to improve the employability of seniors and increase the availability of jobs that better suit their needs.”
According to MOM, the Tripartite Workgroup will convene an Alliance for Action (AfA) on Empowering Multi-Stage Careers for Mature Workers to engage a wide range of stakeholders and gain collective buy-in on the key shifts required. It will also partner employers to develop and prototype real-world solutions to promote senior employment.
Employers supporting Singapore’s older workers to be “exceptional”
These efforts have been backed by local employers.
In his May Day message on April 2025, Singapore National Employers Federation (SNEF) president Tan Hee Teck shared: “Over the next decade, a key challenge is our ageing workforce.”
“In other economies, ageing populations are often a drag on economic growth.”
“However, Singapore can prove to be the exception,” he said.
The SNEF leader believes that the upcoming Tripartite Workgroup are timely initiatives where unions, employers, and the government will come together to design solutions that will better tap into the potential and wisdom of our senior workers.
Tan added: “SNEF will strongly support these efforts with a view to developing effective policies that expand job opportunities for senior workers while enhancing workforce flexibility and productivity.”
“This collaborative effort will lead to practical long-term strategies that address labour shortages and improve employment outcomes for seniors.”
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Flexible work arrangements provide new opportunities for senior workers
There may be some older workers who may be concerned about jobs with flexibility to accommodate their current lifestyle. Understanding this, Tan shared that SNEF, as a contributing party to the Tripartite Guidelines on Flexible Work Arrangements (FWA), believes “there should be a framework for employers and workers to work out mutually agreeable arrangements that accommodate the diverse needs of seniors, while ensuring that the productive capacity (of employers) is not compromised”.
While the business community had initially expressed reservations over the FWA guidelines, time has shown that it is possible to find a balanced and practical implementation path through the collective efforts of Singapore workers and employers.
Tan concluded: “Over the years, our partnership with the labour movement enabled us to weather economic storms and emerge stronger from past crises.”
“While economic uncertainties loom on the horizon, new opportunities are also emerging.”
“Our tripartite partnership is more vital than ever in shaping labour policies that are both pro-business and pro-worker!”
