Retirement payouts pro-rated to number of work hours?
Singapore - Manpower Minister Gan Kim Yong recently announced that older part-time workers who are not re-employed at the age of 62 should receive payouts that are pro-rated according to the hours they work.
This was proposed in lieu of the earlier proposed minimum $4,500 employment assistance payout. Speaking to the media recently, Manpower Minister Gan Kim Yong said this new proposed legislation would be put before Parliament in the months ahead. He added that the urgency to act is necessary as the government intends to enact this new Act by early 2011.
However, this new introduction has raised concerns from employers, as some feel that they should not be required to grant an ex-gratia payment to employees with less than three years of service.