The Indian government has made a recent policy decision to increase the retirement age of central government employees from 60 years to 62 years. This change of strategy is set to occur from the coming financial year April 1, 2024. This decision is informed by the following factors, all of which are intended to enhance the nature of the country’s workforce and counter novel problems.
Reasons Behind the Change
First of all, people live longer today, so they can work longer as well, having a time in their life when they need a pension. The social change is experienced due to the technological changes in the flow of enhancing medical solutions. A lot of people, especially those beyond the age of 60 are still healthy and interested in pursuing their carriers. The first one lies in the ability to share valuable experience by the employees of an organization that is an advantage of having older employees. The knowledge gathered over the years can be a huge advantage for their respective departments and hence bring a lot of value to the workplace.
Advantages for Company’s Workers and The Government
The extended working period can be viewed positively for employees because it ensures that employee’s salary will be paid for two more years. This also keeps the older employees socially active which is very important to the health of those people. In the view of the government, using experienced employees saves the cost on recruiting and training as the workers remain qualified in their duties.
In like manner, the rise in the retirement age has benefits for society too. It is most beneficial in terms of training for older employees can teach the younger ones what they know and are capable of doing. It makes a progressive cycle of understanding, which assists in overlapping generation preferences in the labor market.
Challenges of the New Policy
As we quickly see, there are also complexities that accompany the advantages of the integration. This may cause competition for young talents as the new age has been set to allow people to work until a older age. In addition, the existing health complications maybe a barrier to the efficient performance of the older employee.
