As Singapore’s population continues to age, the issue of senior employment opportunities is becoming increasingly prominent. With a decline in the labor force participation rate and a growing number of residents reaching retirement age, the government, unions, and employers are coming together to address this pressing concern.
A new Tripartite Workgroup on Senior Employment has been established to develop policy recommendations that will support senior workers in remaining productive and employable. The primary goal is to create age-friendly jobs and workplaces that cater to the needs of mature workers. This initiative, announced by Senior Minister of State for Manpower Koh Poh Koon in parliament on March 7, comes at a critical time when Singapore’s labor force participation rate has seen a decline for the third consecutive year.
In 2024, the labor force participation rate for residents aged 15 and above stood at 68.2 percent, down from 68.6 percent in 2023 and 70 percent in 2022. Dr. Koh highlighted the importance of enabling seniors to continue working if they choose to do so, emphasizing the value of their expertise and the opportunity to accumulate additional savings for retirement. This approach not only benefits seniors but also helps employers fulfill their manpower needs in a competitive labor market.
Despite Singapore’s relatively high labor force participation rate for individuals aged 60 to 69, there is still a significant drop in participation rates among seniors in their 50s and early 60s. Many seniors choose to exit the workforce prematurely, citing reasons such as a desire to focus on personal commitments or the need to refresh their skills to re-enter the job market. To address these challenges, the Tripartite Workgroup on Senior Employment will focus on tailoring career services for seniors, providing career guidance workshops, and exploring multi-stage career options.
Tailoring Career Services for Seniors
One of the key strategies the workgroup will explore is the customization of career services for seniors, specifically those aged 50 and above. Workforce Singapore and its partners will offer career guidance workshops to help seniors navigate the evolving job market and identify opportunities that align with their skills and aspirations. By providing targeted support and resources, seniors can make informed decisions about their careers and explore new pathways for professional growth.
The workgroup will also investigate how jobs and workplaces can be adapted to accommodate multi-stage careers, where workers can adjust their workloads based on personal preferences and goals. Fractional work, a concept where seniors with specialized skills offer their expertise on a part-time basis, is one of the innovative ideas under consideration. This approach allows seniors to leverage their experience and knowledge while maintaining flexibility in their work arrangements, striking a balance between work and personal commitments.
CPF Contribution Rate for Older Workers
In addition to these initiatives, the government has introduced measures in Budget 2025 to support senior workers, including adjustments to the Central Provident Fund (CPF) contribution rates for individuals aged 55 to 65. The CPF contribution rates will be raised by 1.5 percentage points in 2026, following recommendations from the Tripartite Workgroup on Older Workers. This adjustment aims to ensure that seniors have adequate financial support as they transition into retirement.
Under the revised CPF contribution rates, workers aged 55 to 60 will see their contribution rate increase to 34 percent, while those aged 60 to 65 will have a contribution rate of 25 percent. To alleviate the impact on employers, a one-year CPF transition offset will be provided to offset half of the increase in employer CPF contributions for workers in this age group. The extension of the Senior Employment Credit scheme and the adjustment of the re-employment age to 69 further demonstrate the government’s commitment to promoting senior employment and providing incentives for employers to hire mature workers.
As Singapore continues to address the challenges of an aging population and changing workforce dynamics, initiatives like the Tripartite Workgroup on Senior Employment play a crucial role in shaping the future of work for seniors. By fostering collaboration between government, unions, and employers, Singapore is paving the way for a more inclusive and age-friendly workplace that empowers seniors to contribute meaningfully to the economy and society.
