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Is there any law which prescribes the retirement age in India?

 

Retirement Age

Working people have to retire one or the other day. People in 40s will always be aiming to retire around 55+; people in 50s will be aiming to retire around 60+; working people in their 60s, will aim at retiring around 70s. Politicians don’t expect to retire at all!

 

Is there any law which prescribes the retirement age in India?

Retirement age is the age at which a person is expected to stop work; withdraw the provident fund and other retirement benefits. The government employees and PF contributors will start getting pension.

 

The retirement age of government employees is fixed at 60 years. The judges retire at the age of 65 years. There is no fixed retirement age for people working in private sector. However, as per Employees Provident Fund (EPF), on attaining 58 years of age, an EPF member ceases to be a member of PF automatically.

 

What about the retirement age of different countries?

  • The average retirement age of major countries is male 65 years and female 63 years.
  • The retirement age in China is 60 for men and 55 for female civil servants and 50 for female workers
  • The retirement age in France is 62, New Zealand 65, UK 65 (Male) and 60(Female) and USA (early retirement at 62) normal retirement at 67 years.

 

Proposal to reduce retirement age of Central government employees – During the last couple of months of UPA government, there was a proposal to increase the retirement age from 60 to 62 years. Now the new government is thinking of reducing the retirement age from 60 to 58 years! 

 

There are over 50 lakh of central government employees in the country. They are due to get an increase in their pay (through 7th pay commission implementation). So, the government is thinking of recruiting youngsters and paying less than retaining the seniors and paying more!

 

Thought for the day

Goodbye tension. Hello Pension

 

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About CA Prasad Chartered Accountant

CA Prasad Chartered Accountant
CA Prasad is a practicing Chartered Accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to [email protected]