Tamil Nadu will incur an additional expenditure of nearly ₹5,000 crore annually by increasing the retirement age of over 13 lakh government employees to 59 from the present 58, said a senior official who did not want to be named.

The age increase will also apply to teachers in government and government-aided schools and colleges, and in State public sector undertakings. Additionally, it will apply to those who are in regular service as on date and due to retire on May 31, said an order issued by Chief Secretary K Shanmugam on Thursday.

EL, DA ‘setbacks’

The order came a week after the announcement of suspension of earned leave (EL) encashment and freezing of dearness allowance (DA) of employees and pensioners. Those moves were expected to help save the State government ₹7,400 crore. The suspension of EL for a year for all government employees and teachers alone would save the exchequer ₹2,450 crore, said a senior government official.

The government normally allows EL encashment for 15 days every year, or 30 days every two years. The suspension is in view of the fiscal stress arising from the pandemic.

Reasons behind move

The official said the freezing of DA and EL had disappointed government employees. The extension of retirement age could be a measure to compensate. However, officially, no reason was given for the sudden move.

Also, with elections about a year away, it is not clear if the move is not entirely political, said observers.

Reacting to the retirement age increase, PK Ilamaran, State President, Tamil Nadu Teachers Association, said it favours the existing teachers and government workers. But lakhs of educated young people waiting to join government service will be disappointed, he observed.

Nearly 70,000 people are waiting to qualify in teachers’ examinations. They could face severe disappointment and end up with problems such as depression if there is an inordinate delay in getting jobs, he said, adding: “I urge the government to review the decision.”

The Tamilnadu Government Employees' Association has protested against the government's decision to increase the retirement age stating that it would deprive youngsters of government jobs to replace the retirees. Nearly 30,000 people will retire between May 2020 and April 2021, it said in a press release.

Members of the association will protest on Friday at various government offices against the order, the release said.