Kerala mulls increasing retirement age of govt employees to 57
T
he Kerala government is mulling to increase the retirement age of government employees to 57 years.
Sources said that talks between various government stakeholders are underway, and an announcement is likely to be made during the New Year when the state budget for the new fiscal will be presented in February by State Finance Minister K.N. Balagopal. Kerala is the only state where government employees retire at the age of 56. During the tenure of Oommen Chandy (2011-16), to standardize the retirement age of all employees, it was decided to increase the retirement age from 55 to 56 years.
As per a recent study by a committee, the state government will be able to divert more than Rs 5,000 crores if the retirement age is increased by one year, as this would affect retirement benefits including gratuity and end-of-service benefits for capital spending. If the state government is able to go ahead with the proposed plan for government employees, it will be a major image booster for the CPI-M government. This is particularly important as state government employees are unhappy with the Vijayan government regarding the increase in DA arrears, which currently stands at around 19 percent.
With local bodies polls due in the second half of 2025 and Assembly polls scheduled to take place in April 2026, this step is seen as significant for the Vijayan-led government.
✔️ Kerala mulls increasing retirement age of govt employees to 57
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