Karnataka's move to raise retirement age to 60 at private firms draws flak

Companies say move will see millions of unemployed losing out on job opportunities

Apurva Venkat  |  Bengaluru 

Labour, worker

Karnataka is planning to introduce a law to increase the retirement age of private sector employees to 60, prompting companies to react by saying that the step is detrimental to the employment prospects in the state. 

The Cabinet has approved the plan to increase the retirement age from 58 to 60 and the order is expected to come into effect in May. “This will mainly affect factories. It is difficult health-wise for the workers to continue beyond 58. It also leads to less productivity. The move would have been good had there been a serious shortage of workers. We have a lot of unemployment currently,” said B C Prabhakar, president of the Karnataka Employers Association. 

The association has sent a letter to the labour minister, expressing concern over the move.   “Unlike 20-30 years ago, there is very strong social security for employees nowadays. There is the provident fund and gratuity. So when people retire, they are taken care of. To improve the life of a worker, the minimum wages should be increased and not the retirement age,” added Prabhakar.

Karnataka's move to raise retirement age to 60 at private firms draws flak

Companies say move will see millions of unemployed losing out on job opportunities

Karnataka plans to bring a law to increase the retirement age of employees to 60, which companies say it would hurt the state more as there are millions of unemployed people who would lose out on newer opportunities. The state cabinet has approved the plan to increase the retirement age from 58 to 60 that it expects to come into effect from May. "The new age will mainly affect factories. It is difficult health-wise for the workers to work beyond 58. It also leads to less productivity. The move would have been good had there been a serious shortage of workforce, however, we have a lot of unemployment currently," says BC Prabhakar, president of Karnataka Employer's Association.The association has already sent a letter to the labour minister expressing concerns over the extension of the retirement age. The association says this could lead to delay in promotions for juniors as well as postpone opportunities for those who are unemployed."Unlike 20 to 30 years back, there is a very strong .
Karnataka is planning to introduce a law to increase the retirement age of private sector employees to 60, prompting companies to react by saying that the step is detrimental to the employment prospects in the state. 

The Cabinet has approved the plan to increase the retirement age from 58 to 60 and the order is expected to come into effect in May. “This will mainly affect factories. It is difficult health-wise for the workers to continue beyond 58. It also leads to less productivity. The move would have been good had there been a serious shortage of workers. We have a lot of unemployment currently,” said B C Prabhakar, president of the Karnataka Employers Association. 

The association has sent a letter to the labour minister, expressing concern over the move.   “Unlike 20-30 years ago, there is very strong social security for employees nowadays. There is the provident fund and gratuity. So when people retire, they are taken care of. To improve the life of a worker, the minimum wages should be increased and not the retirement age,” added Prabhakar.

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