MOM – Employment of Older Workers

Chairman Sir,

The Government has progressively delayed the CPF drawdown age from 62 to 65.  Older workers will need to stay employed for as long as possible until they can access their CPF funds.

Therefore, it is important for our senior workers to have ample employment opportunities when they age so that they can enjoy a happy and dignified working life in their silver years.  Unfortunately, age discrimination could be a stumbling block for older job seekers.

In a Straits Times report last year, ‘age discrimination complaints received by the Tripartite Alliance for Fair Employment Practices have risen. The article also noted that, ‘most complaints to the Committee cite discrimination at the pre-employment stage.’

I believe the number of such complaints is relatively small since the Committee is not a well-known to the workers.  Older job seekers who are discriminated because of their age may not know where to go to lodge their complaints. Hence, the number of complaints received by the committee could just be the tip of the ice-berg.

The Government’s budget measure of encouraging the employment of older, low-wage workers is through the Special Employment Credit (SEC).

Although employers will receive a special credit of 50 to 80 per cent of employer CPF contributions for workers aged 55 and above, the scheme is only emporary as it is called special and one off.

Sir, I would like to ask:

  1. Whether the government will make the employment credit scheme for older, low-wage worker permanent.
  2. What is the Government’s overall strategy in ensuring older workers will be just as competitive as their younger counterparts?
  3. Whether MOM would consider establishing a unit under its ministry to look into issues related to the employment of older workers and more importantly, to review and deal with the age discrimination against older workers by employers.