Cabinet nod to raise retirement age to 60

Written by Economy Bureau | New Delhi, Jul 12 | Updated: Jul 13 2007, 05:57am hrs
The Cabinet on Thursday gave its approval to raise the retirement age of employees to 60 years from 58 years in Central public sector undertakings (PSUs) which have shown net profit in the last three years.

Information and broadcasting minister Priyaranjan

Dasmunsi said the Cabinet had decided to offer this incentive to those profit making PSUs which had not availed of any budgetary support from the government for the last three years.

Dasmunsi said the PSUs concerned would then, not be eligible to seek any budgetary support from the Centre in future, adding that the final decision would lie with the minister in charge of administering the concerned undertaking or enterprise.

Dasmunsi said several PSUs would qualify for this incentive. He added that the PSUs could do without additional budgetary support largely due to cooperation of employees and therefore it was logical to give them the necessary incentives. The announcement comes just a few months before the Sixth Pay Commission submits its report for the revision of the wage structure of 5.5 million central government employees. The government is also considering a proposal to raise the retirement age of central employees to 62 years from 60 years.

A proposal to this effect has been prepared by the department of personnel and training and is awaiting Cabinet approval.