Longer-term Support for SMEs to Maintain Employment and Wages of Older Workers
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Shawn Loh’s inquiry regarding longer-term support for small and medium enterprises to maintain the employment and wages of older workers amidst rapid technology cycles. Minister for Manpower Dr Tan See Leng highlighted that the Senior Employment Credit (SEC) currently provides wage offsets of up to 7% for Singaporean employees aged 60 and above earning below $4,000 monthly. The SEC has been extended to end-2026 while the Government conducts a fundamental review of senior employment strategies. Additionally, a Tripartite Workgroup on Senior Employment has been convened to refresh policies and help employers manage multi-generational workforces effectively. Recommendations from the Workgroup on empowering senior workers to remain productive and employable are expected to be released later this year.
Transcript
51 Mr Shawn Loh asked the Minister for Manpower whether more longer-term support, including through wage support and reducing employment-related costs, such as insurance, can be provided to small and medium enterprises (SMEs) to maintain employment and wages of older workers, so that the impact of decreasing productivity of some older workers as a result of structurally faster technology cycles can be shared between employers and the Government.
Dr Tan See Leng: Senior workers bring a wealth of skills and experience accumulated over their careers. We want to enable senior workers to contribute productively to the economy and support employers in reaping the benefits of an experienced workforce. The Government encourages employers to hire senior workers through the Senior Employment Credit, or SEC. Under the SEC, employers, including the small and medium enterprises, can receive wage offsets of up to 7% for Singaporean employees aged 60 and above, earning less than $4,000 a month. The Government has recently extended the SEC to end-2026 while we conduct a more fundamental review of our senior employment strategy.
In this regard, the Government and tripartite partners have convened a Tripartite Workgroup on Senior Employment to review and refresh our policies to support senior employment. In particular, the Workgroup is studying how to help employers build capabilities to manage a multi-generational workforce and empower senior workers to remain productive and employable. More updates will be provided when the Workgroup releases its recommendations later this year.