The State government seems to have decided not to disturb the current age of retirement — 60 years — for its staff.
The main reason cited for not going back to 58 years, which was the retirement age until last May, is the “heavy financial outgo” that the government may have to suffer this year.
₹7,000 crore outgo
As per an estimate, at least ₹7,000 crore will have to be shelled out if the retirement age is advanced to 58.
It is open knowledge that the pandemic has aggravated the tight financial situation of Tamil Nadu.
In February this year, then Chief Minister Edappadi K. Palaniswami announced an extension in the retirement age to 60, from 59.
In May 2020, the government made the first change, by raising the age to 59, when the State was in the early phase of the COVID-19 pandemic, which hit the finances of the State adversely.
At the time, it was expected that the State would get relief of ₹5,000 crore during 2020-21 by increasing the retirement age.
There are approximately nine lakh government employees and, on average, 3% of them — around 27,000 people — retire every year.
The process, which got disrupted last May, will witness a revival next year, unless the State government revisits its present position on the age of retirement for staff.
