Dear HR Practitioners,

I have a few employees who will be reaching age 62. Can I know how you would treat their extension. Will it be:

1. Allow them to continue working until age 65?
2. Retire them and give them a re-employment contract until age 65?
3. Retire them and give them a re-employment contract on a year-to-year basis until age 65



1.  We will either issue them a re-employment contract on a year-to-year basis or allow them to continue to work under the existing employment terms without further salary adjustment or increment.

2.  Under the Retirement and Re-employment Act (RRA), the minimum retirement age is 62 years. Employers will be required to offer re-employment to eligible employees from age 62 to 67 to continue employment in your organisation.

Your re-employment contract should be for at least 1 year, renewable every year up to age 65. The first initial contract of re-employment should start on the same day you turn 62 years.

A Identify eligible employees for re-employment.
· Have served your current employer for at least 3 years before turning 62.
· Have satisfactory work performance, as assessed by the employer.
· Are medically fit to continue working.


B. Begin discussions as early as 6 months before your employee turns 62.
· For eligible employees, offer a re-employment contract at least 3 months before their retirement date.
· For employees who do not qualify, inform them early so that they can better prepare for their retirement or seek other employment opportunities.
· Refer to the Tripartite Guidelines when making your re-employment offer.

C. Employment Assistance Payment [EAP]
· If all re-employment options within the organisation is still unable to identify a suitable job for the employee concerned, the company may offer Employment Assistance Payment (EAP). 


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