Can Retirement age 60 to 58 Solve Unemployment Problem?
“The Financial Express”, one of the leading newspapers recently published a news article on the Central Government’s plan to reduce the retirement age of employees from 60 to 58. This news shocked the central government employees.
“Reducing the retirement age of central government employees from 60 to 58 will help to solve the unemployment problem in India?”
Reasons for decreasing the retirement age from 60 to 58:
The following reasons are attributed for decreasing the present age of retirement:
1) To create more employment opportunities for the youth
2) To increase the contribution of younger employees in the government sectors and
3) To compensate the loss accrued due to payment of allowances
Unemployment issue:
None can have any disagreement about the fact that employment opportunities should be provided for the unemployed. There are so many ways for solving the unemployment problem. They are:
1) Introducing new employment policies
2) Filling all the positions lying vacant and
3) Promoting self-employment by introducing new schemes and providing suitable facilities and many more ways can help to solve the problem of unemployment.
Increasing the retirement age from 60 to 62 for scientists:
In the Rajya Sabha, for a question raised on increasing the retirement age for scientists from 60 to 62 in written format, the response given was: “it is under consideration”.
The important reasons for increasing the retirement age for scientists are:
1) Their experience and expertise should benefit the younger generation and
2) The average life span has increased.
“Isn’t there a need to increase the retirement age of employees working in other fields?”
Allowance issue:
Extra allowance that has to be paid is cited as a reason for bringing down the retirement age of employees from 60 to 58. However, in reality, the pay commission is set up only once in 10 years and benefits the central government employees.
“In the long interval of 10 years, only these allowances help the employees to cope with inflation”.
In the past, the average service period of a central government employee was 30 to 40 years. Presently, as the age limit for appointment has been relaxed, the average service period has come down to 20 to 30 years. Due to this, an employee can only have 2 or 3 pay commissions in his service period.
In this situation, citing allowance as a reason for decreasing retirement age and altering the present allowance rates will adversely affect the economic condition of central government employees.
Average retirement age in the world:
The average retirement age of many nations is between 63 and 65. Comparatively speaking, even the age of 60 is obviously a very early age for retirement. In this context, we do not know whether the employees will accept 58 as the age of retirement.
Will early retirement solve the unemployment problem?
Employment for all is a very important. It is the duty of a nation to provide employment to all her youth and lead them in a better way. The hope and aspiration of every youth in this country is to get a good job. They do not expect the retirement age to be brought down from 60 to 58.
Even when all the 50 lakh central government employees retire, will it help to resolve the unemployment problem of this nation?
Pr says
If retirement age decrease then I will be under pressure to pay home loan because everyone has a plan how to solve his family problem. We have taken loan depending on our service span. I am really under pressure after hearing the news of 58 year. Kindly see.
D.LOGANATHAN says
In the Rajya Sabha, for a question raised on increasing the retirement age for scientists from 60 to 62 in written format, the response given was: “it is under consideration”. The important reasons for increasing the retirement age for scientists are: 1) Their experience and expertise should benefit the younger generation and 2) The average life span has increased.
Now, my question to the Government is – why this consideration is only for Scientist? Why not for all Central Government Employees?. When some of the State Government’s wants to increase the retirement age to 62, why not for Central Government Employees. 50 lakh Central Government Employees are still hope that, Hon’ble Prime Minister Shri Narendra Modiji will look into the matter and announce a good news for the Central Staff, shortly. Our Appeal to PM to compare the International Retirement Age with Indian’s Retirement Age.
Kumar says
As a central GOVT Employee I hope that, this strong action will save life of unemployed youths. HATS OFF to HONERABLE PRIME MINISTER
Shri. NARENDRA MODI.
The reduction of retirement age from 60 to 55 is better than from 60 to 58.
bhoori singh says
Hats off to you to. First set an example to get resigned yourself and provide one more vacancy to the youth of india. It will increase the moral of youth and also save the life of youth.
vasudeva panda says
It certainly helps to accommodate youth substituting the old age personnel. However, in the first instance the retirement age must be 59 and after a year do 58 and onwards, which has limited ramifications both for the incumbents who are due to retire feel limited disurbance in contrast to sudden implementation of 58. Therefore, phase wise reduction is recommended.
pradeep kumar says
Posts are lying vacant.what Modi has done to fulfill it?…..Bete ko to nahi milegi par baap ki jiyegi.he will never appoint young ones but govt job will be on contract which will be low paid and most of the work will be outsourced.Modi govt is for the capitalist and he has nothing to do with the interest of workers.
First he should set an example by retiring himself.80 Wala desh chalayega par govt.servant nahi.achche din aa gaye.
jagabandhu Sethi, Cutack. says
Reducing retirement age from 60 to 58 will not solve the employment problem, because there are many factors responsible for the unemployment problems, rather it will create problem for employer for smooth functioning of the office/ organization.