Bill to increase private sector retirement age to 60

Although the Bill, if passed, would increase the retirement age of private sector employees to 60, the minister would be empowered to exempt some employers from the provision.

KUALA LUMPUR: The Human Resources Ministry tabled the Minimum Retirement Age Bill 2012 at Parliament today, which would increase the retirement age of private sector employees from the current 55 to 60.

The Bill was read for the first time by Human Resources Minister Dr S Subramaniam.

However, Section 18 of the Act gives full power to the minister to decide whether to exempt any employers or class of employers from all or any provisions of the Act.

The new Bill also excludes workers who take up optional retirement and termination of service contract other than the age factor.

The minister would also be empowered to increase retirement age for private sector employees by mere notification via gazette, under Section 4 (2) of the Act.

However, the bill excludes,among others, those who are working on probationary term, domestic servants, non-citizen employees and those employed on fixed contract term which does not extend to more than 24 months.

Any employers found guilty to have forced their employees to retire below the age of 60 under the new Bill would be fined for up to RM10,000 if convicted.