Malaysia - Minister says private sector retirement age still under discussion

PUTRAJAYA, Sept 28 — The Private Sector Retirement Age Act, which allows employees to work until they are 64, is still a matter of discussion for the government.

Human Resource Minister Datuk Dr Subramaniam Sathasivam said today the statement by Malaysian Trades Union Congress (MTUC) secretary-general Abdul Halim Mansor on the new retirement age was only a suggestion and that it had not been implemented by the government yet.

“That is only Halim’s suggestion. We are still discussing the Act,” Dr Subramaniam (picture) told reporters today following the appointment of National Wage Consultative Council members at his ministry here.

“Only after the Act is passed will we have a final decision,” he added.

On Monday, Halim told The Malaysian Insider that private sector employees will be allowed to work until they are 64, with a minimum mandatory retirement age of 60 under a new law being drafted by the government.

The Private Sector Retirement Age Act will mandate retirement at 60, with an option for a four-year extension.

“This means that the retirement age will be raised from 55 to 60. A technical committee has met two or three times with the last coming just before Hari Raya,” Halim had said.

The Malaysian Insider understands that the change, which will benefit six million workers, will also require an amendment to the Employment and Employees Provident Fund Acts.

It is also understood that except for one employers’ representative, a unanimous agreement has been reached on the proposal.

By Lisa J. Ariffin

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