What is the Retirement Age in India?

Recently, the French Government proposed to increase the retirement age in France from 62 to 64 years, which garnered massive protests. Chances are that this proposal might rub off on many more countries, and we would soon see an increase in the retirement age in India as well. 

Retirement age in India is one of the lowest globally. Countries like Spain and Italy have set their retirement age as 66 and 67 years, respectively. Whereas, in India, the retirement age for private sector employees is between 58 to 60 years. For government employees, it is 60 years. However, this may change in the imminent future. 

Read on to know the different aspects of the retirement age in India. 

Retirement Age In India 

Presently, India’s retirement age of 58-60 years is the lowest retirement age across the globe. In October 2020, the Kerala Government passed an order to increase the state retirement age to 60 years. It was made applicable to all government sectors in the state. The order came after the Andhra Pradesh Government increased their retirement age from 60 to 62 years for state government employees.

As the retirement age of government employees is a state subject, different states can set the retirement age at their discretion. However, it must adhere to the guidelines set by the Central Government. 

New Retirement Age In India

Even though there is no concrete announcement from the Central Government, chances are that the Indian Government shall take inspiration from France. 

Many states have already increased the retirement age of their employees to 62 years. Following their action, the Central Government might increase the retirement age of central government employees from 60 to anywhere up to 65 years. Discussions are ongoing across various departments and ministries. 

High Court Judge retirement age in India

At present, there are 25 high courts in the country. A high court judge in India retires at 62 years, whereas a supreme court judge retires at 65 years. Previously, this age was fixed at 60 years. However, after the 15th Constitutional Amendment was introduced in 1963, it was moved to 62 years. 

In a recent presentation made by the Department of Justice, it was clarified that, at present, there is no consideration of changing the retirement age of high court or supreme court judges. However, arguments were also made in favour and defence of this rule. While increasing the age would help reduce the number of pending cases, it may also increase the number of non-performing judges.

Retirement age in India for Central Government employees 

At present, the retirement age for Central Government employees is 60 years. However, for state government employees, the respective government is at liberty to decide the retirement age of their state employees. While there are no protests in the country over this change in retirement age, the government employees' stance on this matter is still unclear.

However, if the government does increase this age, it would delay the payment of retirement benefits for government employees. Additionally, considering the youth population of India, it would make it even more difficult for young aspirants to step up on their career graph.

Employees' retirement age in India for private sector

The retirement age for private sector employees is between 58-60 years. However, depending on the company, it can change the retirement age for its employees. 

In 2022, Financial Services giant JP Morgan increased its retirement age, whereas Tech Mahindra pulled down its retirement age to 55 years back in 2015. Therefore, there is no uniform retirement age for private sector employees in India. 

A higher retirement age helps business houses retain their leaders and subject-matter experts for a longer period. It also gives them the advantage of delaying retirement benefits, just like the government employees.

Army retirement age in India 

The retirement age for army personnel in three wings of defence, i.e. navy, army and air force, are different. The retirement age for army personnel ranges between 54-58 years based on the rank of officers in the Indian army. For personnel in the air force, the age limit is 60 years and for Navy officers, it is 56 years.

Back in 2021, when the government proposed an increase in the retirement age of army officers, it was an unwelcome move for many. Officers claimed that it nullified the idea of keeping the army “young and fighting fit.” There was also a mention of slashing pensions for militants retiring early.

Police retirement age in India 

The retirement age for officers associated with the Police department of different states shall vary depending on their state of service. For example, the retirement age for police personnel in the state of Uttar Pradesh is set as 60 years. Additionally, the retirement age of all Central Armed Police Force (CAPF) personnel is set as 60 years.

Will the retirement age be increased to 62?

There is no clear decision about increasing the retirement age to 62 in India. However, it might be a necessary step based on the current facts and figures. 

 As already mentioned, the retirement age in India is the lowest in the world. The life expectancy of the citizens has also increased from 61.7 in 1998 to 70.1 in 2020. This means a retired individual probably has no stable source of income for almost a decade in their later years, except for their pension and other retirement benefits. A higher retirement age also allows a person to build a bigger EPF corpus at the time of their retirement.

Final words

The change in retirement age has sparked controversy in many parts of France. However, governments of several countries understand the logic behind this decision and are considering it for their own countries as well. While it would force people to work for extra years and get delayed retirement benefits, it may be a beneficial move for business houses and the government.