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 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.