From 1 July 2026, Singapore’s statutory retirement age rises to 64 and the re-employment age to 69. This is the latest step in Singapore’s long-term plan to raise both ages to 65 and 70 respectively by 2030. The changes are mandatory — employers cannot require employees to retire before the new retirement age, and must offer re-employment to eligible employees up to the new re-employment age.

For HR managers, business owners, and company secretaries, the July 2026 changes require immediate attention to employment contracts, HR policies, and payroll structures. This guide explains what has changed, who is affected, and what employers must do to comply.

What Changed on 1 July 2026

The Retirement and Re-employment Act (RRA) sets the minimum retirement and re-employment ages for employees in Singapore. The key changes effective 1 July 2026 are:

  • Retirement age: Increased from 63 to 64. Employers cannot compulsorily retire a Singapore citizen or permanent resident employee before the age of 64.
  • Re-employment age: Increased from 68 to 69. Employers must offer re-employment to eligible employees who turn 64 (i.e., reach the retirement age) up to the age of 69.

These changes apply to all employees who are Singapore citizens or permanent residents. They do not apply to foreign employees (Employment Pass, S Pass, or Work Permit holders).

Who Is Covered

The RRA applies to employees who are:

  • Singapore citizens or permanent residents
  • Employed under a contract of service (i.e., employed, not self-employed)
  • At least 55 years old

There is no minimum salary threshold — all employees meeting these criteria, from executives to manual workers, are covered. This includes part-time employees, though the re-employment terms may be adjusted for part-timers.

Re-Employment Obligations

When a covered employee reaches the retirement age (now 64), the employer has two options:

Option 1: Offer re-employment

The employer offers the employee a re-employment contract. The re-employment contract may be on different terms from the original employment contract — for example, part-time hours, a different role, or adjusted pay — as long as the offer is reasonable and made in good faith. The employee may accept or decline the offer.

Option 2: Offer an Employment Assistance Payment (EAP)

If the employer is genuinely unable to offer re-employment (e.g., the role has been made redundant or the employee’s skills no longer match available positions), the employer must pay the employee an Employment Assistance Payment (EAP). The EAP is a one-time payment to help the employee find alternative employment. The minimum EAP is equivalent to 3.5 months’ salary, capped at S$13,000.

Employers cannot simply choose to pay the EAP to avoid re-employment obligations. The EAP is only available where genuine re-employment is not possible. Employers who wrongly offer EAP instead of re-employment may be found to have breached the RRA.

Eligibility Criteria for Re-Employment

Not every employee who reaches the retirement age is automatically entitled to re-employment. The employee must satisfy all of the following:

  • Is a Singapore citizen or permanent resident
  • Has served the same employer (or a related company within the same group) for at least 2 years before turning 64
  • Is medically fit to continue working
  • Has satisfactory work performance (as assessed by the employer)

Employers who rely on “unsatisfactory performance” as a basis for not offering re-employment should ensure performance has been documented and managed through a proper performance management process. Using the re-employment eligibility criteria as a pretext to avoid re-employment obligations is unlawful.

CPF Contributions After Retirement Age

CPF contribution rates for employees aged 55 and above are tiered. As the retirement age rises, employers should ensure their payroll is updated to reflect the correct CPF contribution rates. The rates are adjusted by age band, and for employees continuing to work beyond 64 under re-employment contracts, the applicable rate depends on their current age, not their employment status.

As of 2026, the CPF contribution rates for employees aged 60 to 65 are:

  • Above 60 to 65: Employee 13%, Employer 14.5% (total 27.5%)

Employers who keep employees on beyond 64 under re-employment should review these rates carefully and ensure payroll software is updated. Incorrect CPF contributions are a common compliance failure that attracts penalties from the CPF Board.

Action Items for Employers

1. Review employment contracts

Check whether any employment contracts specify a retirement age of 63 or 68. These provisions must be updated to reflect the new ages. Any contractual term that provides for retirement before 64 is now void to the extent of the inconsistency with the RRA.

2. Update HR policies

Employee handbooks, HR manuals, and retirement policies should be updated to reflect the new retirement age of 64 and re-employment age of 69. This includes updating any mandatory retirement provisions, retrenchment policies, or benefit entitlement cut-offs that are tied to the previous retirement age.

3. Identify affected employees

Generate a list of employees who will turn 63 or 64 in the next 12 months. For employees approaching 64, begin the re-employment process early — ideally 6 months before the employee’s retirement age — to allow sufficient time to discuss re-employment terms, adjust job roles if necessary, and obtain medical fitness assessments.

4. Train HR and line managers

HR personnel and line managers who handle re-employment discussions must be familiar with the new ages and the legal requirements. Ill-informed conversations with employees approaching retirement can expose the company to claims of age discrimination or RRA breaches.

5. Update payroll and HRMS

Ensure your payroll and HR management systems reflect the new ages for the purpose of CPF calculations, benefit entitlement calculations, and leave accrual. Many HRMS platforms allow you to set retirement and re-employment ages — check that these have been updated.

Penalties for Non-Compliance

Failure to comply with the RRA is a criminal offence. Employers who compulsorily retire an employee before the retirement age, or who fail to offer re-employment or an EAP to an eligible employee, commit an offence and may be prosecuted. Penalties include fines of up to S$10,000 per offence.

In addition to criminal liability, employees may bring a claim in the Employment Claims Tribunal (ECT) for wrongful dismissal or failure to comply with re-employment obligations. The ECT can order the employer to pay compensation to the affected employee.

How Raffles Corporate Services Can Help

The July 2026 retirement and re-employment age changes require updates across employment contracts, HR policies, payroll, and compliance documentation. If your business employs Singapore citizens or PRs who are approaching or past 63, these changes affect you now.

Raffles Corporate Services provides employment compliance reviews, employment contract drafting and updating, and HR policy advisory for Singapore employers. We can help you identify your affected employees, update your documentation, and ensure your re-employment processes comply with the RRA.

To get started, email us at [email protected] or call, SMS, or WhatsApp +65 8501 7133.

— The Editorial Team, Raffles Corporate Services