Retirement Age In Malaysia And Its Policy
The malaysian government has by policy a mandatory retirement age for its employees.
Retirement age in malaysia and its policy. The malaysian government will study the proposal to increase the retirement age from 60 to 65 as practised in several developed countries including singapore human resources minister m. In the private sector however the law provides for a minimum retirement age i e. The purpose of this policy is to establish the normal age of retirement and the principles for a fair and consistent assessment of applications for extension beyond retirement.
Minimum retirement age is 60. Minimum retirement age act 2012. The minimum retirement age for employees in malaysia is regulated by the minimum retirement age act 2012 which came into force on 1 july 2013.
In some contexts the retirement age is the age at which a person is expected or required to cease work and is usually the age at which they may be entitled to receive superannuation or other government benefits like a state pension policy makers usually consider the demography fiscal cost of ageing health life. Within the civil service the minimum retirement age in the government service was increased gradually from 55 to 56 in 2001 58 in 2008 and eventually to 60 in 2012. The re employment age was raised from 65 to 67 on 1 july 2017 to help older.
Employers must offer re employment to eligible employees who turn 62 up to age 67 to continue their employment in the organisation. The current retirement age suits the average life expectancy of 74 5 years according to the statistics department. The minimum retirement age of an employee in malaysia is 60.
The minimum retirement age act 2012 the act was gazetted on 16 august 2012 and was. Before that they retired at 55. Workforce retirement policy hrp31 2 contents 1 0 introduction 1 1 rationale 1 2 scope 1 3 aims 2 0 retirement principles 2 1 retirement options 2 2 the employment age regulations 2006 3 0 procedure 3 1 formal pre retirement procedure for staff nearing default retirement age of 65 4 0 implementation and compliance 4 1 implementation.
The 60 year old threshold for retirement in the private sector kicked in almost four years ago when the minimum retirement age act took effect. It accordingly permits extensions beyond retirement subject to the rules of the relevant retirement funds. This article lists the statutory retirement age in different countries.
The minimum retirement age of an employee shall be upon the employee reaching the age of 60 years pursuant to section 4 1 of the.
