Retirement age for private sector may be increased to 58 – Dr.Subra

Private sector retirement age may be increased to 58 – Dr Subra
Posted on NST April 29, 2011, Friday

PUTRAJAYA: The retirement age of workers in the private sector may be increased to 58 years, in line with the civil service, said Human Resource Minister Datuk Dr S Subramaniam.

However, the proposal is still in the discussion stage and may require some time to finalise, he said.

“We are having discussions with the stakeholders to look for a right solution…a suitable age for the private sector retirement age. The objective of increasing the retirement age from the current 55 age limit, is because those who retire at the age have much to offer in terms of productivity,” he told reporters here today.

The Malaysian Trades Union Congress (MTUC) had earlier urged the government to extend the retirement age of the private sector to 60, as a means of retaining human capital and increasing productivity.

Subramaniam also said the government was studying the prospect of expanding the social security services to ensure the welfare of workers who are retrenched or when companies fold up their business.

“We have started talks with the stakeholders to identify a system or compensation for workers who are laid off for no fault of theirs. The scheme is aimed at easing the burden of workers who are certain to face a bleak future after losing their income,” he said.

Meanwhile Subramaniam said the Labour Day celebrations would be held on May 7, at Bukit Jalil and attended by Deputy Prime Minister Tan Sri Muhyiddin Yassin. – Bernama