Ageism in Singapore offices

Ageism, or age discrimination, is defined as stereotyping and discriminating against individuals or groups because of their age. Normally, this is used to describe prejudice against the elderly. However, this term has also been used to describe discrimination against teenagers and children.

Given our low birth rates, it is inevitable that Singapore will have an ageing population in the near future. As the population ages, ageism at the workplace is becoming increasingly common.

Despite the government’s efforts in encouraging people to retire at a later age, most employees would face a compulsory wage cut at 60. This wage cut is subjected to “reasonable factors” such as employee’s productivity, performance, duties and responsibilities. It is also permitted by the Retirement Age Act (RRA), which sets the retirement age at 62. Such as wage cut assumes that the employees’ performance would fall after they turn 60. Clearly, this shows that ageism is common at offices.

It is certainly shocking that 80% of unionized companies here cut the wages of older workers when they turn 60. Often, they are paid less for the doing the same job as younger co-workers. The RRA is meant to make the employment of older workers more affordable. However, in doing so, ageism is an unintended outcome.

Another good example of ageism would be the employers’ contributions to the employees’ Central Provident Fund (CPF). If one is below the age of 50, employers have to contribute 14.5% of employees’ wages to their CPF. However, once one is within the ages of 50 to 55, the contribution rate is less than 10.5%. This drops further to 7.5% when one is between the ages of 55 to 60, and hits the base of 5% from age 60 onwards. The employees’ own CPF contribution falls too, albeit at a slower rate.

With a rapidly ageing population, 20% of Singapore’s is expected to be aged 65 and older in 2030. This is an 8% increase as compared to today. In addition, our life expectancy is set to be higher at 81 years. Hence, keeping able seniors employed will not only meet the needs of the economy, but also ensures that they will be active and financially independent in their later years. This will in turn reduce the governments’ and the younger generation’s burden in caring for the aged.

Today, the employment rate of workers aged 55 to 64 in Singapore is 57 per cent, up from 45 per cent in 2003. To make the workplace senior-friendly, employers, the Government and society need to urgently change their ageist mindset. Only by doing so, then can we ensure that economic growth would not slow down in the future, and the burden of caring for the aged remains at a minimum level.

Hence, we should honour our senior citizens by abolishing the laws, policies and mindsets that assume that seniors are less productive at work. Since we are not ageist at home, why should the workplace be different?