Retirement Age in Private Companies: What Should You Expect?

What is the age of retirement in a private company?

There is no specific retirement age in general. It will depend on the company and will be mentioned in the appointment order and/or the certified standing orders of the company.

Mr. Madhu is right, but mostly private companies adhere to 58 as the retirement age. An individual company can set a different retirement age than 58. The PSU and other companies have changed the retirement age from 58 to 60.

Employers in the private sector will follow the stipulations outlined in their HR policy terms and conditions. Normally, retirement age is set at 60 years, but this practice is prevalent in the organized/corporate sector. In the case of small and medium establishments, the promoters may have a flexible policy to waive this stipulation, and in deserving cases, an extension by a couple of years is possible. Labor laws do not have any mandatory provisions regarding this matter.

The central government has amended model standing orders by increasing the retirement age from 58 years to 60 years. Otherwise, in general, all are considering the retirement age as 58 years.

Even in the PF Act, the pension fund contribution of 8.33% will stop being accepted once it completes the age of 58.