BENGALURU: The Cabinet on Friday approved the proposal to raise retirement age of workers in the private sector from 58 years to 60 years.
However, the rules would not apply to the clerical workforce nor to the IT sector, sources in the government said.
A senior minister said the amendment to the rules would be introduced in a few days to benefit labourers who are retiring this month-end. The decision has been taken ignoring huge pressure from private managements not to increase the retirement age since they have to pay high salary and other benefits.
The industrialists had argued that the decision would have an adverse impact on hiring of young work force in the next two years. M C Dinesh, president of Federation of Karnataka Chamber of Commerce and Industries (FKCCI), said the decision was both good and bad.
He said fresh graduates lacked skill and were not industry-friendly, and as a result it was better to have experienced persons at the helm for a slightly longer time. But in the long run, the move would hit employment opportunities of youngsters, he said.
Saying that the decision was taken keeping 2018 elections in mind, he said government should ideally not interfere in the running of the private sector.