As part of its effort to help older employees remain economically productive, the Government will enact re-employment legislation on January 1, 2012 to enable more people to continue working beyond the current statutory retirement age of 62, up to 65 in the first instance and subsequently, up to 67.
The Retirement & Re-employment Act (RRA) was passed in Parliament in January 2011 and will be come into force on 1 January 2012. The Act will require employers to re-employ eligible employees who attain the statutory minimum retirement age of 62 years old or contractual retirement age (whichever is higher,) on or after 1 January 2012.
Specially designed for SMEs, the grant is part of an initiative developed by Singapore Workforce Development Agency (WDA) in partnership with the Tripartite Partners to help companies to put in place HR systems to facilitate practices in preparation for the Re-employment Legislation.
You may apply for the Grant if your company meets the following criteria:
- Registered or incorporated in Singapore;
- At least 30% of the shareholding is local;
- Minimum of 5 employees with CPF contributions; and
- Annual Sales turnover of not more than S$100 million OR Employment size not exceeding 200 employees.
Companies that have previously received any form of funding support under the previous ADVANTAGE! Scheme or have attended PREPARETM before 1 April 2010 are not eligible.
Eligible companies will receive funding on three main components to implement a sustainable Re-Employment system.
A. Programme on acquiring Skills & Competencies
Eligible companies will pay a subsidised fee of S$347.50 (inclusive prevailing GST of S$87.50) and send their HR or supervisory staff to attend PREPARETM – a 2-days workshop to acquire skills and competencies on Re-Employment.
B. Installation of E-Performance Appraisal System
After completing the programme, the company will be provided with an e-performance appraisal system to facilitate Re-Employment.
C. Company’s effort in preparing for Re-Employment
Companies that are subsequently audited to have fulfilled the full deliverables within 2 months will receive the S$10,000 Grant; S$6,000 for the developed e-appraisal system and S$4,000 in cash to defray efforts in preparing for Re-Employment.