What is the Senior Worker Early Adopter Grant and Part-Time Re-employment Grant?
The Ministry of Manpower launched the Senior Worker Support Package to encourage businesses to adjust to the increase in Retirement Age (RA), Re-employment Age (REA) and CPF contribution rates. These aim to strengthen and create progressive workplaces environment for Senior Workers to continue working.
The two of the measures rolled out under the Senior Worker Support Package are as the followings:
Senior Worker Early Adopter Grant
To support employers to implement a higher internal retirement age and re-employment age ahead of time.
Part-time Re-employment Grant
To support employers to provide part-time re-employment opportunities to Senior Workers upon their requests.
From 1 July 2022, the Retirement Age (RA) will increase from 62 to 63, and the Re-employment Age (REA) will increase from 67 to 68.
To support progressive employers that are willing and able to implement a higher internal retirement age and re-employment age ahead of time, MOM has introduced the Senior Worker Early Adopter Grant from 1 July 2020 onwards.
For applicants received on/after 16 February 2021, the Senior Worker Early Adopter Grant (SWEAG) provides support of up to $125,000 for employers to increase their own retirement and re-employment ages ahead of legislative schedule by 3 years or more*. Employers are required to adopt the Tripartite Standard on Age-Friendly Workplace Practices (TS-AWP).
* The increase in the internal Retirement Age (RA) and Re-employment Age (REA) of a minimum of 3 years (from existing statutory RA and REA of 62 and 67 respectively) to qualify for the SWEAG would be applicable only if companies apply for the grant before 5 July 2021.
If the application of the grant is on 5 July 2021 or after, companies would have to raise their internal RA and REA to at least 66 and 71 respectively, i.e. a minimum of 3 years from the new RA and REA of 63 and 68 respectively that would take effect on 1 July 2022. This allows senior workers in these firms to benefit fully from three years of higher internal RA and REA, which is what the SWEAG is designed to promote.
Senior workers increasingly prefer to reduce their work intensity gradually as they approach retirement. They are prepared to remain in the workforce if they could undertake part-time work arrangements during the re-employment phase.
As employers need time to restructure their work structures and processes to accommodate more part-time employees, the Part-time Re-employment Grant has been introduced from 1 July 2020 onwards to support employers that commit to providing part-time re-employment opportunities to senior workers upon their request.
The Part-time Re-employment Grant provides funding support of up to $125,000 to employers that commit to a part-time re-employment policy for its eligible senior workers. For applicants received on/after 16 February 2021, employers are required to adopt the Tripartite Standard on Age-Friendly Workplace Practices (TS-AWP).
All companies/employers can apply for SWEAG and/or PTRG if they are legally registered or incorporated in Singapore. This includes societies and non-profit organisations such as charities and voluntary welfare organisations. Governmental agencies, statutory boards and other organs-of-state are not eligible. Employer must have at least one senior worker aged 60 and above (based on birth year), either Singapore citizen or permanent resident employed on a permanent basis or on employment contract (s) that are at least 12 months in duration.
To apply for SWEAG & PTRG, submit the following documents to firstname.lastname@example.org:
- Completed Employer Application Kit
- CPF Form 90 for all Senior Workers
- Photocopies of NRICs for all Senior Workers and
- ACRA dated within 6 months from the date of application
Once approved, you will receive a Letter of Offer.
You are required to return the signed Letter of Acceptance within 1 month.
Companies are required to take the following actions before filing a claim:
- Complete claim form that provides information on all senior workers.
- Furnish updated HR policy on:
- Internal/employer-level Retirement and Re-Employment ages showing the respective increases from current policy
- Communicate the new policy to all employees with proof of communication
- Issue addendums (specific clauses will be provided) to employment contracts documenting the policy change to all employees
- For Senior Workers: Companies to submit individually addressed and signed addendums (i.e. those aged 60 and above).
- For non-Senior Workers: Companies to submit documentary proof that the standardized addendum (e.g. email with attachment or signed acknowledgment) has been sent to the rest of the employees
- Prepare employment contracts for all senior workers benefitted under this grant
- Prepare NRICs of senior workers for all replacement senior workers, if any
- Prepare CPF Form 90 for all replacement senior workers, if any
- Adopt the Tripartite Standard on Age-Friendly Workplace Practices (TS-AWP)