Retirement Age Likely To Rise: Big Update For Central Govt Employees

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In a major development that has the possibility of affecting millions of government employees all across India, reports suggest that the Centre is seriously considering a proposal to increase the retirement age of its employees. Thus, if this was to be implemented, it would work toward more years in service, increased pensionary benefits, and promotion opportunities for employees prior to retirement.

Proposed Retirement Age Hike

Most central-government employees retire at the age of 60 years. However, sources close to the matter state that the government is considering raising this retirement age to 62 years. This proposal is seen as a mechanism to retain experienced manpower in the system; reduce immediate pension burden on the exchequer; and finally, help achieve greater productivity within the government sector. 

The Basic Grounds For The Movement

  1. Demographical Edge: Good life expectancy and health standards will now enable an employee to serve well beyond 60 years of age.
  2. Economic Factors: Adjourning pension payments would lessen the fiscal pressures.
  3. Retention of Skills: The experienced officers would be of great assistance in governance, policy-making, and administration organization. The initiative aims at preventing an untimely loss of institutional memory.

Who Gets Impacted In The Policy?

If it is passed, the new retirement age shall be applied to central government employees and, possibly, adopted in other states. The Class II employees, as well as those in Class III, are mostly going benefitted through the new ruling. However, some persons engaged in more hazardous or high-risk activities may be exempted from it because of physical demands of the job.

Advantages Under The Proposed Policy

  • Two Years More of Earning: Employees will be paid salary and allowances for two years after they retire.
  • Higher Pension: Longer service means a higher last drawn salary was considered in drawing the final pension, along with service benefits on this period.
  • More Promotions: Employees close to retirement might still be offered a final promotion, which would affect their pension calculations positively.

Awaiting A Final Decision

At present, the proposal is under consideration of the DoPT, and the formal notification is awaited. Also, it is possible that the policy will be implemented in phases for specific departments initially.

Also Read:Big Pay Hike Confirmed: 8th Pay Commission Brings Double Salary Boost

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