Measures to Help Older Workers Stay Employed and Find New Jobs Despite COVID-19 Impact
Ministry of ManpowerSpeakers
Summary
This question concerns measures to support the employment of workers aged 60 and above during the pandemic, as raised by Miss Rachel Ong. Minister for Manpower Dr Tan See Leng noted that senior re-entry rates improved to 43.8% by mid-2021, with many finding jobs in the administrative, retail, and hospitality sectors. He highlighted the $1.5 billion Senior Worker Support Package, which offers the Senior Employment Credit providing employers with wage offsets of up to 8%. The package also includes the Senior Worker Early Adopter Grant and the Part-time Re-employment Grant to incentivize higher retirement ages and flexible work options. Additionally, the CPF Transition Offset will cover half of the 2022 employer contribution increase to help businesses retain their older workforce.
Transcript
30 Miss Rachel Ong asked the Minister for Manpower with regard to older workers aged 60 years old and above (a) whether there will be further measures to help these older workers in staying employed during the pandemic; (b) since March 2020, what is the percentage of these older workers who have been successfully placed in new jobs after being displaced; and (c) what is the breakdown of job types by sector that these older workers are placed in.
Dr Tan See Leng: The prospects of senior workers have improved in line with the overall measured recovery. The six-month re-entry rate among senior retrenched residents has improved from a low of 39.3% in the third quarter of 2020 to around 43.8% in the second quarter of 2021. Our senior workers are finding jobs in a wide range of sectors, with seven in 10 in Administrative & Support Services, Wholesale & Retail Trade, Accommodation & F&B Services, and Community, Social & Personal Services. Notwithstanding the recession, the employment rate of those aged 60 and above increased slightly from 38.5% in 2019 to 39.0% in 2020.
The Government continues to support senior workers to stay in their current jobs or to pivot to new jobs in other industries. The Senior Worker Support Package introduced in 2020 supports employers in hiring and retaining senior workers. It includes:
The Senior Employment Credit, which provides employers wage offsets of up to 8% for hiring senior workers aged 55 and above.
The Senior Worker Early Adopter Grant, which encourages employers to implement a higher internal retirement age and re-employment age, above the statutory minimum.
The Part-time Re-employment Grant, which supports employers who commit to a part-time re-employment policy whenever eligible senior workers request for it; and
The CPF Transition Offset, which will provide employers with transitionary wage offset equivalent to 50% of the increase in employer CPF contribution rates that will take effect in 2022.
With a budget of $1.5 billion, the Senior Worker Support Package will support employers over three years.