Cabinet green lights to increase private sector retirement age to 60

The Cabinet has cleared a draft bill to increase the existing minimum retirement age limit of private sector employees to age of 60 and to present the same in Parliament for the approval.

Following stakeholder negotiations, the Legal Draftsman had prepared the draft bill to amend the current legislation on retirement age of the private sector employees, which stand at 55.

Accordingly, Minister of Labour Nimal Siripala de Silva on Monday sought the approval of the Cabinet of Ministers to present the bill on minimum retirement age for private sector employees prepared by the legal draftsman in parliament for approval.  

“The bill has been prepared including provisions to extend the retirement age to 60 years with respect to employees who have not attained the age of 52 years on the effective date of the proposed Act, and in the case of employees aged 52 years or above on the effective date of the proposed Act. To employ them under 3 age groups up to a maximum age of 59 years,” the Government Information Department said.

Stressing on the requirement to increase the current minimum age of retirement, the Cabinet Co-Spokesperson and Minister of Mass Media,

Dullas Alahapperuma pointed out that the life expectancy of the population has increased up to 79 years of age, compared to 50-55 when the current legislation came into force.