In nothing short of good news for the salaried, the Employees’ Provident Fund Organization (EPFO) has proposed to increase the retirement age of private and government employees.
If reports are to be believed, the EPFO has touted that the increase will “reduce the burden on the pension system significantly.” Both the government and the employees, stands to benefit. “By 2047, the number of people above 60 years of age in India will be more than 140 million. This is likely to deepen the stress on the pension fund. Giving more time to work, also means letting the PF reserves fill up more. Plus, with lifestyle and fitness changes, 70 is now the new 60,” shared an EPFO official on conditions of anonymity.
Currently, the age of retirement in India hovers between the ages 58 to 65. This covers private and government employees. In the European Union, the average age of retirement is 65 years, while in Denmark, Italy and Greece it has been 67 years. The US has always been with 66 years of age as the time to retire.
Alongside, 2023 being Assembly election year in most states, political analysts are seeing this as a way of wooing the masses. For instance, in BJP-ruled Madhya Pradesh, where the General Administration Department is gunning for a one-year increase to the retirement age for government employees.
Notably, at present the retirement age of such employees is 62 years. Once passed by CM Shivraj Chauhan, the retirement age will increase to 63 years. This is the second time in five years, when the retirement age is being increased. Earlier the retirement age was 60 years.
“In ways, it also helps to offset the shortage of employees due to retirement and slow recruitment process. It also ensures work continuity in government offices,” added an official.
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