Retirement Age Increase 2024: The Government of India has taken a big decision to increase the retirement age of central employees.
It has been decided to increase the retirement age by 2 years. This decision will benefit lakhs of government employees and they will now be able to work till the age of 62. This step has been taken in the interest of the employees so that they can serve for a longer period and give the benefit of their experience to the country.
This decision will not only benefit the employees but will also benefit the government. Getting the services of experienced employees for a longer period will improve administration and the cost of training new employees will also be reduced. Also, the expenditure on pension will also be reduced because employees will start taking pension after 2 years.
Decision to increase retirement age
The government was considering this proposal for a long time and now it has been approved in the cabinet meeting. This decision will come into effect from April 1, 2025. This means that all central employees retiring after April 1, 2025 will get its benefit.
Overview of the scheme
Description
Information
name of the scheme
retirement age increase scheme
effective date
1 April 2025
2 years
increase in retirement age
62 years
new retirement age
Beneficiary
Benefit
Objective
All Central Government Employees
Opportunity for 2 years additional service
Avail the services of experienced staff
Reasons for increasing retirement age
The government has taken this decision for several reasons:
Increase in life expectancy: The average life expectancy of Indians has increased in the last few decades. While it was 61.4 years in 1998, it will increase to 72.24 years in 2024.
Need for experienced employees: The government feels that the services of experienced employees can be utilized for a longer period.
Reducing pension burden: Increasing the retirement age will reduce the pension expenditure as employees will start receiving pension after 2 years.
Administrative Reforms: Having experienced staff will ensure continuity in administration and improve the quality of work.
Which employees will get benefits
This decision will apply to all central government employees. This includes:
Employees of all ministries and departments
Employees of Central Public Sector Undertakings (PSUs)
employees of autonomous bodies
Teachers and staff of central universities
However, this decision will not apply to state government employees. State governments can take a separate decision for their employees.
Effect of increasing retirement age
The decision will impact several areas:
impact on employees
Additional Income: Employees will receive additional salary for 2 years which will strengthen their financial position.
Bigger pension corpus: 2 years more contribution will result in bigger pension corpus, which will give more money after retirement
Will get pension.
Opportunity to work: Experienced employees get a chance to give the benefit of their experience to the country
influence on government
Less pension burden: Due to retirement happening two years later, the expenditure on pension will be less.
Services of experienced employees: The government will get the services of experienced employees for a long time. Reduction in training cost: The cost of training new employees will be reduced.
