Some of the changes made includes:
- Companies must now offer employees the eligibility to work until 67. Previously it was until 65.
- Companies are not allowed to reduce the salary of employees who turn 60 from July onwards.
- If the company is unable to find work for the older employee, the company can
- transfer the older employees to their subsidiaries
- transfer the older employees to other companies if the employee agrees to the transfer
Common Misconceptions: Re-employment age increased from 65 to 67. This means I have to work until I am 67 before I can retire
You can retire at any age. You can retire the minute you strike 4D or Toto, there is no need to wait until 67 or 65 before you can retire. The Government has not shifted the retirement goal post further away from you. Instead, it mandates that if you wish to work and am fit to work, your company is REQUIRED BY LAW to keep you as an employee until you reach the age of 67.
Recommended Read: Top News in 2016 that might affect 2017
For more details on the changes, click HERE.
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