Singapore legislation
Section 5
Section 5
Salary adjustment at 60 years of age
(1)
This section shall only apply to employees who attain 60 years of age on or after 1st January 1999, and any reference in this section to an employee shall be a reference to any such employee.
(2)
Where a retirement age higher than 60 years is prescribed by or under section 4(1), an employer may, from time to time and in accordance with this section, reduce the salary of any of his employees on or at any time after the employee attains 60 years of age.
(3)
An employer who intends to reduce the salary of any of his employees under this section shall, before the employee concerned attains 60 years of age or other higher age, as the case may be, give reasonable prior notice in writing to the employee of his intention to reduce his salary, stating the amount of such reduction and the effective date of such reduction, and giving him a reasonable opportunity of being heard.
(4)
If an employee does not agree with any proposed reduction in his salary, he may either retire or be retired by his employer on or after attaining 60 years of age notwithstanding any of the provisions of this Act.
(5)
An employer may reduce under this section the salary of different employees differently except that —
the reduction shall be based on reasonable factors other than age (including but not limited to the employee’s productivity, performance, duties and responsibilities, and the wage system such as the seniority system applicable to the employee) unless age is a bona fide occupational qualification reasonably necessary to the ordinary performance of the employee’s job; and
no employer may reduce the salary of any of his employees by an aggregate amount which exceeds 10% of the salary paid or payable to the employee when that employee attains or attained 60 years of age.
(6)
Notwithstanding any law to the contrary, the service of a written notice under subsection (3) by an employer on any of his employees shall not be regarded as a termination or repudiation of the contract of employment between the employer and the employee, or as requiring or causing the employee to retire or resign on the ground of age.