Retirement Policy [Thread 421723]

Dear seniors,
is there a common retirement policy in the corporate governed by laws? In case a worker attains an age of 60(his retirement age as per his company's policy) on 15 may, what will be his date of retirement... 15 may or 30/31st may?
Regards'
atul

No, there is no common retirement policy. IT differs from kind of employments, working sector the regions........
Date of retirement will be the last day of the month.........

Dear BSSV
'Date of retirement will be the last day of the month'(even if he completes the stipulated age criterion in mid month) is this binding by some law?
Regards,
Atul

Yes Mr. Atul, it's a practice.......... There is no specific Act but it is always the last day of the month..... Year and the Month is important in case of superannuation and the day is always the last day of the month......
But yeah, if his birth day is on 1st, then the last day of the previous month, otherwise last day of the same month.....
(Have you ever heard any saying that they retired on a particular day, you always hear that they retired in a specific month.....)

Hi BSSV,
i think the retirement age is relative with the senior citizen's age under Income Tax of India. I am not so sure about it. Let me know your opinion.
--
Vishwanath
"Yath Bhavam Tath Bhavathu"

As per PF rule, they consider pension from the age of 58 and not at 60. Also, if you are completing 58 years during the month, you have to consider not the month, but the date. For example, if an employee is completing 58 years of age on 15th of July, you have to take the date of retirement as 15th July and not 31st July. This is only for pension with PF authorities.

many organisation take the employees retirement on completion of his 60th birthday... So 15th may could be right

Hello Vishwanath,

The Age of retirement is not the same everywhere. It differ from central government to state govt. It also differ from different sectors and employment. And companies also have their own retirement policies......

Since PF is deducted on Basic pay, it applicable till the retiring person's last drawn salary, i.e 12% of last drawn basic pay.

The income tax for senior and very senior and very very senior citizens age is provided in order to give them the benefit of tax reductions. The percentage of Tax differ from different age groups , so it has got no direct connection with the PF deductions.......

Infact, if you take the government employees, their pension is fixed upon there last drawn salaries itself, say if u r retired in the month of may and u got the hike in the month of may itself or in previous month, the increased salary is taken in to consideration for the the pensions amount, so the last drawn salary is always considered for the final settlements......

(May observe the Tax Slabs : Income tax slab 2012-2013 | financeminister.in

The main reasons behind such tax variations is for the cost of maintenance is high like medical expenses, dependency, and the salary they used to get when they were retired was meager in India....)