Recognising the need for older workers to remain employed, the government has come up with various measures which include the extension of the retirement age to 62, reduction in the costs of employing older workers, Back-to-Work programs to encourage the economically inactive to enter the labour force and re-training and skills upgrading of older workers.
To reduce the cost of employing older workers, the employer's CPF contribution rate for older workers aged 55 and above has decreased and employers can cut wages of workers aged above 60 by up to 10%.
Employers have moved away from the seniority wage system and turned to a performance-based wage system. An SHRI (2007) survey revealed that only 14% of Singapore employers use a seniority wage system, while 61% are offering a performance-based wage system. Thus, this enables older workers to be hired because the wages increase with age using a seniority wage system.
In the workplace, employers are encouraged to employ older workers and to job redesign. An example will be NTUC FairPrice where they hired older workers and assisted them in job upgrading and career transitions. Older workers can also enrol themselves in training programs to upgrade their skills and this ensures their employability.