Employees in Singapore can look forward to having more control over their work schedules and locations under new tripartite guidelines.
2024
The new guidelines, announced on Monday, 15 April, by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), will come into effect starting 1 December this year, 2024, reported Bloomberg.
TAFEP is an agency set up by Singapore's Ministry of Manpower, the National Trades Union Congress, and the Singapore National Employers Federation. While the guidelines are not legally enforceable, they do require all firms in Singapore to establish a formal process for employees to request flexible work arrangements.
Below is a breakdown of the new flexible work arrangements (FWAs):
Workers will have the right to formally request four-day work weeks, more work-from-home (WFH) days, and staggered work timings
Additionally, they can also ask for flexible work locations.
According to Yeo Wan Ling, the co-chair of the Tripartite Workgroup, access to flexible work arrangements is often the main consideration for caregivers, women workers, and senior workers.
How will it work?
All firms in Singapore are required to establish a process for employees to submit FWA requests.
While companies can reject requests, they cannot do so on the basis that it runs counter to a firm’s traditions or that management simply doesn't believe in such flexible work styles, according to TAFEP guidelines.
Employers can reject FWA requests only for specific reasons, such as:
- FWA will significantly worsen productivity
- FWA will significantly increase costs
- FWA is not feasible due to the nature of the work
Employers cannot reject requests based on:
- Company tradition to not have FWAs
- The management does not believe in FWAs
- Bosses or supervisors preferring to have direct sight of the employee in the office
If an employer is uncooperative or wilfully refuses to comply with the new guidelines, the Ministry of Manpower may issue a warning and require the employer to attend corrective workshops, reported TODAY.
What's the reason behind these new guidelines?
Firstly, Singapore's move aligns with a global trend towards more flexible work options, with governments requiring businesses to consider flexible work requests.
It may also benefit businesses by attracting talent more quickly and increasing revenue.
But most importantly, it addresses Singapore's specific challenges, such as a tight labour market, an ageing workforce, and the need to empower a diverse workforce, reported CNA.
Additionally, Minister of State for Manpower Gan Siow Huang emphasised that flexible work arrangements are crucial for Singapore's future economic strength.
"I feel that it's not a choice that we can make. If we want to have a strong labour force in Singapore, we want to be able to empower adults in Singapore who want to work to be able to work, flexible work arrangements have to be the way to go," said Gan, who is also the Minister of State for Education.
Meanwhile, as part of its plan to increase the retirement age to 65 by 2030, the Singapore government recently announced that it will raise its retirement and re-employment age by one year in 2026:
Soon, Employees In Singapore Can Work An Extra Year Before They Retire
The country is raising its retirement and re-employment age in 2026.
As part of its plan to increase the retirement age to 65 by 2030, the Singapore government has announced that it will raise its retirement and re-employment age by one year in 2026
With the one year raised, the retirement and re-employment age will be 64 and 69 in 2026. Following which, there will be another raise in the age bracket in 2030.
"This will bring us another step closer to our eventual goal of setting retirement and re-employment ages at 65 and 70 respectively by 2030," Singapore's Minister of State for Manpower Gan Siow Huang was quoted as saying.
According to the minister, due to the slow workforce growth and the ageing population evident in Singapore, the government wants to ensure that all employees, particularly senior workers, "contribute as much as they are able to, for as long as they wish".
Singapore's current retirement and re-employment age of 63 and 68 were raised in 2022. Prior to this, the minimum retirement age was 62.
"To ensure that the next increase is implemented just as smoothly, I encourage employers to start planning early. Some will need to adjust their manpower and upskilling plans to retain their senior workers," the minister said.
"This is why we are taking a stepped approach and announcing the increase early. Come 2026, employers who have prepared well will be better placed to tap on their senior workforce to meet their business needs."
On the other hand, Malaysians are facing a potential retirement crisis due to insufficient savings in the EPF:
Malaysians are facing a potential crisis in their retirement savings, primarily due to two main factors: insufficient savings in the Employees Provident Fund (EPF) and taking money out of the pension fund during the COVID-19 pandemic
In a report by Singapore news outlet CNA, EPF chief strategy officer Nurhisham Hussein said that there are EPF contributors who fall into poverty at retirement or even before retirement because they don't have the capacity to continue generating the kind of income they need.
Between 2020 and 2022, it is reported that 8.1 million Malaysians withdrew a collective total of RM145 billion from their EPF savings through special EPF withdrawal schemes such as i-Lestari, i-Sinar, and i-Citra.
According to CNA, EPF's calculations last year showed that less than 5% of Malaysians can afford to retire
30% of EPF contributors have emptied their savings in Account 1 (which is reserved until they turn 55), and more than half of EPF members aged below 55 have less than RM10,000 in their pension fund.
For those who took out their savings from their EPF accounts during the pandemic, it isn't just a case of depleted funds. EPF's dividend rate has been an average of 6% annually since 2011, so early withdrawals have also resulted in lost opportunity cost, as contributors lose out on the interest their accounts may potentially earn, making the financially vulnerable even poorer.
NEWS
Over Half Of EPF Members Aged 50 To 54 Have Less Than RM50,000 In Their Retirement Funds
This has been described as a 'ticking time bomb' for our ageing nation.
By Celine Low — 30 Oct 2023, 03:12 PM
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Cover image via Asyraf Hamzah/NSTP
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Malaysians are facing a potential crisis in their retirement savings, primarily due to two main factors: insufficient savings in the Employees Provident Fund (EPF) and taking money out of the pension fund during the COVID-19 pandemic
In a report by Singapore news outlet CNA, EPF chief strategy officer Nurhisham Hussein said that there are EPF contributors who fall into poverty at retirement or even before retirement because they don't have the capacity to continue generating the kind of income they need.
Between 2020 and 2022, it is reported that 8.1 million Malaysians withdrew a collective total of RM145 billion from their EPF savings through special EPF withdrawal schemes such as i-Lestari, i-Sinar, and i-Citra.
Image via New Straits Times
According to CNA, EPF's calculations last year showed that less than 5% of Malaysians can afford to retire
30% of EPF contributors have emptied their savings in Account 1 (which is reserved until they turn 55), and more than half of EPF members aged below 55 have less than RM10,000 in their pension fund.
For those who took out their savings from their EPF accounts during the pandemic, it isn't just a case of depleted funds. EPF's dividend rate has been an average of 6% annually since 2011, so early withdrawals have also resulted in lost opportunity cost, as contributors lose out on the interest their accounts may potentially earn, making the financially vulnerable even poorer.
Early EPF withdrawals have been criticised by economists and researchers, calling it "disastrous", "irresponsible", and the "worst policy ever" to be implemented in the country
At the start of the COVID-19 pandemic, the government led by then prime minister Tan Sri Muhyiddin Yassin made it easier for Malaysians facing financial constraints to withdraw money from their pension fund.
The government allocated more than RM530 billion for eight economic stimulus and aid packages in 2020 and 2021. But as the pandemic went on, government resources ran low.
Many Malaysians had to resort to forking out their own money from their EPF savings to look after themselves during the lockdowns.
In a written reply to Al Jazeera, EPF said that the uptick in withdrawals would have long-term effects on contributors' ability to retire comfortably.
EPF had set a basic savings target of RM240,000 by the age of 55, which would allow retirees to spend RM1,000 a month on basic necessities for 20 years, in line with the Malaysian life expectancy
But, saving for retirement is still an uphill task. A survey by fund management company StashAway Malaysia, cited in FMT, shows that 45% of Malaysians will not even have RM100,000 in savings upon retirement.
Meanwhile, more than half of EPF members aged 50 to 54 have less than RM50,000 saved up in their retirement fund, meaning that they would have less than RM208 per month to use in the next 20 years after they retire.
The next generation will have to shoulder the burden if large numbers of Malaysians retire without sufficient savings
According to CodeBlue, Malaysia will be an ageing nation by 2030 when people of the age of 60 and above surpasses 15% of the total population.
Though there isn't one true solution for this pressing issue, Nurhisham suggests that increasing the current retirement age of 60 years old and increasing employment among senior citizens could boost savings levels.
Hiking up the retirement age does have its limits, according to Malaysia University of Science and Technology economist Geoffrey Williams, as those aged 40 and above would have "little time left to work" to save a minimum RM600,000 — an amount stated by EPF — which would be required to retire decently in Kuala Lumpur.
Nurhisham has said that there is a chance to "reform" within the next 10 to 20 years, as the public is receptive about the importance of saving up for retirement.
"People do realise the importance of it. It's just whether they have the capacity for it," he said.
Here's an expenditure guide providing estimated minimum expenses for various types of households:
June 2023; EPF Says A Single Person Needs RM1,930 A Month To Survive In Klang Valley, Malaysia π²πΎ
The Employees Provident Fund (EPF) has released Belanjawanku, an expenditure guide providing estimated minimum expenses for various types of households in Malaysia
Belanjawanku was developed to help Malaysians with personal budgeting based on actual spending patterns by urban households.
The guide looks at the expenditures for individuals and families in Klang Valley and eleven other cities, including Johor Bahru, Kota Kinabalu, Kuala Terengganu, Alor Setar, Kuching, Kuantan, Kota Bharu, Georgetown, Ipoh, Seremban, and Bandar Melaka.
It was made in collaboration with Universiti Malaya's Social Wellbeing Research Centre.
The guide details out minimum expenses by household category and provides recommendations on expenses allocation for necessities, savings, and optional spending for each city
The guide estimates that the minimum monthly expenditure is the highest in Klang Valley, while the lowest is in Alor Setar.
According to Belanjawanku, an unmarried person who uses public transport to commute in Klang Valley would need a monthly budget of RM1,930.
A single person who owns a car in Klang Valley has to fork out RM2,600 a month for a reasonable standard of living.
Meanwhile, married couples with one child living in Klang Valley need at least RM5,980 per month
Married couples with no children will need RM4,630, while those with two children will need RM6,890 a month.
A senior citizen living alone in Klang Valley would need an estimate budget of RM2,520 a month.
"I've Saved RM1.24 Million" — M'sian Shares Difficulties Of Working In SG For 20 Years.
How would you spend your money?
02 Feb 2024
A Malaysian man recently took to a Facebook group to share the challenges he encountered after working in Singapore for over two decades.
According to mStar, the 42-year-old man said he began working as an engineer in Singapore in 2003.
During his tenure in the country, he disclosed that he successfully accumulated SGD354,258 (RM1.24 million) in his Central Provident Fund (CPF) account.
CPF serves as a social security and retirement savings scheme for employees in Singapore, similar to Malaysia's Employees Provident Fund (EPF).
"If your CPF has accumulated to this extent, what should you do? I'm still contemplating what to do with this money because I'm no longer able to work in Singapore and commute daily.
"It's hard to quit my job, considering of my current position as an engineer with a monthly salary of SGD5,000 (RM17,618). When I saw the total amount [in my CPF account], I felt like withdrawing it and enjoying the fruits of my labour," he said.
After dealing with challenges in Singapore, he now faces a new dilemma in retirement back in Malaysia
In the comments section, the man also expressed concern about his future upon returning to Malaysia, having spent his formative years working at a factory in Singapore.
"The original plan was to work until the age of 55, but when I got promoted, I felt stressed with the increased workload. That's when I realised I needed to explore other options before chronic illness sets in," he said.
He added that he does not intend to use his CPF funds for property investment due to the high capital requirements and his inability to manage them.
Seeking insights and suggestions, he turned to the Facebook group for guidance on his next chapter in Malaysia, as he doesn't have a wife to turn to, and his parents asked him to figure out his future on his own.
Netizens gave the man various pieces of advice in the comments section.
Most of the Facebook group members suggested looking into business and real estate investing, while others emphasised the significance of taking a break and rediscovering happiness after years of hard work.
"You should invest in the afterlife. Seek happiness, and get closer to God. Go do some 'healing' activities and enjoy God's creation while serving those in need," commented one user.
Others suggested the man to contemplate marriage, with some users even expressing interest in becoming potential life partners.
"Get married, brother, it's time to settle down," wrote one user.
"You're not married yet? Well, I don't need a dowry. In fact, the wedding doesn't have to be extravagant, I'll just follow your lead. As long as you're not tired of searching for love, it will come on its own," commented another.
Meanwhile, a former university lecturer from Malaysia shared that he earns five times more working as a cleaner in Singapore:
Last year, employees at 61 companies took part in the world's largest four-day work weeks trial, which yielded positive results:
Study Finds That Employees Are Less Likely To Quit When Given A 4-Day Work Week
What will you do with an extra day off every week? Play music? Spend time with friends? Do yoga? Paint? Cook? Swim? Visit out-of-town family members? Volunteer at animal shelters? Pick up a new hobby? The possibilities are endless.
"What will you do with an extra day off every week?"
It's the question that thousands of employees at 61 companies that took part in the world's largest four-day work week trial will now have to ponder over after the study found overwhelmingly positive results.
Of the 61 companies in the UK, 56 (92%) said that they will be continuing with the four-day week, with 18 of them confirming that the policy is now a permanent change, in a big win for a better work-life balance.
The study was organised by an advocacy group called 4 Day Week Global, in collaboration with the research group Autonomy, and researchers at Boston College and the University of Cambridge.
Around 2,900 employees took part in the UK-based study, held from June to December 2022, covering different sectors, ranging from non-profits, manufacturers, and finance firms to even fish-and-chip shops.
As per the results of the study released on Tuesday, 21 February, some of the most extensive benefits of shorter working hours were found in the overall improvement in the well-being of the employees.
The majority of the companies agreed that productivity did not suffer and revenues rose 35% on average compared to previous years
"Staff is getting more work done in less time," said Citizens Advice Gateshead chief operating officer Paul Oliver, adding that job retention and recruitment improved while sickness levels went down.
"Before and after" data showed that 39% of employees were less stressed, and 71% had reduced levels of burnout at the end of the six-month trial. Likewise, levels of anxiety, fatigue, and sleep issues decreased.
Employees were also much less likely to quit their jobs as a result of the four-day week policy.
Data also showed positive effects of a four-day week were worth more than their weight in money. 15% of employees said no amount of money would convince them to return to the traditional 5-day work week.
"This is a major breakthrough moment for the movement towards a four-day working week," Joe Ryle, director of the 4 Day Week Campaign, said in a statement to Reuters yesterday.
The study also found that employees experienced an increase in life satisfaction, with men spending much more time with their children
According to the authors of the study, with more free time available, men spent greater time in housework or childcare, thereby narrowing the well-documented gender gap in unpaid domestic and care work.
In the trial, the time men spent looking after children increased by more than double that of women (27% to 13%), but the share of housework between these two genders stayed almost exactly the same.
In general, the employees had an excellent experience with the four-day week trial.
From 0 (very bad) to 10 (very good), the average score was 9.04, the trial found.
When asked whether they would want to continue with the four-day week trial, 90% replied "Yes/Definitely want to continue", with only five people (0.43%) saying that they "somewhat do not want to continue".
However, no one reported that they "definitely do not want to continue".
"It feels like you're easing yourself into the weekend..."
The trial showed that it had significant impacts on people's lives, both inside and outside of work.
While most reported being able to spend more time on the activities they already enjoyed, the four-day work week also allowed some employees to take up entirely new activities, such as using their fifth day to undertake professional qualifications and take day trips with grandparents.
For many, being able to complete essential tasks such as grocery shopping, attending medical appointments, doing household repairs, or cleaning on their fifth day enabled the weekend to become free for genuine leisure and self-initiated activities, as opposed to running errands.
"It feels like you're easing yourself into the weekend... By the time Saturday and Sunday comes, it feels like I've done my [chores]... Whatever it is," said a senior manager of a care services provider.
In conclusion, the trial found that an extra day off every week offers a greater work-life balance for staff, at no additional cost to companies
Companies expressed that they are extremely pleased with employee performance and productivity. It has been a similar case for employees themselves too, the authors of the study noted.
Shorter working hours left employees less stressed and burned out, and it improved their mental and physical health. As a result of the four-day week, many reported that their life satisfaction improved.
The authors also noted that the overwhelmingly positive results from the UK trial, therefore, made it clear that the four-day work week is ready to take the next step from experimentation to implementation.
You can't change things without things changing. — A sales and operations employee
"Not Happy, Don't Come To Work" — Boss In China Gives Employees 10 Days 'Unhappy Leave'
"Everyone has times when they're not happy," said supermarket chain founder, Yu Donglai.
A business owner in China has introduced "unhappy leave" for his company's employees in a bid to help them achieve work-life balance
"I want every staff member to have freedom. Everyone has times when they're not happy, so if you're not happy, do not come to work," said Yu Donglai, the founder and chairman of supermarket chain Pangdonglai in Henan province.
According to SCMP, at the 2024 China Supermarket Week forum in late March, Yu announced that his employees would be eligible to request up to 10 days of extra leave at their discretion.
The leave days are in addition to the employees' existing 30 days of annual leave at the company.
"This leave cannot be denied by management. Denial is a violation," he added, expressing hope that his employees could experience freedom in determining the amount of rest time they need.
The retail tycoon is known for introducing company benefits that prioritises employees' interests and wellbeing
Among the benefits Pangdonglai employees are entitled to include seven-hour work days, no work calls after office hours and on weekends, and an added five days off during Chinese New Year.
Last year, Yu also publicly condemned other bosses in China that pushed for long working hours.
"Making staff work overtime is unethical and an expropriation of other people's opportunities for growth," he said.
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