Tuesday, September 27, 2011

Private sector retirement age to go up

KUALA LUMPUR, Sept 26 — Private sector employees will be allowed to work until they are 64, with a minimum mandatory retirement age of 60 under a new law being drafted by the government.
The Private Sector Retirement Age Act will mandate retirement at 60, with an option for a four-year extension.

“This means that the retirement age will be raised from 55 to 60. A technical committee has met two or three times with the last coming just before Hari Raya,” Malaysian Trades Union Congress (MTUC) secretary-general Abdul Halim Mansor told The Malaysian Insider.

The Malaysian Insider understands that the change, which will benefit six million workers, will also require an amendment to the Employment and Employees Provident Fund Acts.

It is also understood that except for one employers’ representative, there has been unanimous agreement on the proposal.

Although the matter is being refined by the technical committee, Halim said the MTUC wants the welfare and benefits of employees to be given priority.

“We ask the government to take into account the shortcomings of the Employment Act when laws on private sector retirement age are introduced,” he said.

The private sector has followed the civil service’s original retirement age of 55 as there is no law mandating a retirement age.

Although the government has since raised the retirement age for civil servants to 58, the private sector has not followed suit.

MTUC has previously pressed the government to extend the retirement age to 60.

No comments: