Retirement age increase – EPFO has requested Finance Ministry to raise the retirement age from 60 to 65. If this policy is adopted, the retirement age of public and private sector workers across the country will be 65.
In this case, if someone wants to retire at the age of 60, he can do that. But he/she can be employed till 65 years of age. Recently the Cabinet of Ministers has passed the Central Labour Code. It has been said to include the code as an amendment in this policy. The Central Labour Code has already been adopted in many states.
Retirement age increase – Govt. employees will also get other benefits with the Retirement age increase.
There are going to be changes in the salary hike policy. The Pay Commission has proposed a pay hike in the new equation. However, this is the first request to increase the retirement age by 5 years to 65 years. EPFO has given several reasons for this proposal.
EPFO has suggested raising the retirement age of private and public sector employees of government and non-government organizations in India. One of the officials, said that by 2047, the number of people over the age of 60 will exceed 14 crores in number.
As per Pension Regulator, the number of 65-year-old citizens is increasing in a high range. So there is going to be a terrible pressure on the pension fund in the upcoming future.
In that case, retirement age increase will reduce the pressure on the pension system. If the government employees can work till 65 years of their age, the basic pension will increase in a surprising level.
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Written and edited by Rajeshwari.