Reportedly the government of tamilnadu on thursday passed an order increasing the age of retirement for government employees from 58 to 59. This is the first time the state government has revised the retirement age of government employees in the last 40 years. According to a press release issued by the Chief Minister’s office, the order to increase the retirement age is applicable to all government and government-aided school teachers, college teachers and public sector employees who are due for retirement from May 31, 2020 onwards. Speaking to TNM about the larger implications of this move, PK Ilamaran, the State President of tamil Nadu Teachers’ Association, says that while retaining a section of employees for one more year, the government is depriving a crop of youth from their rightful jobs.
MG Devasahayam, a retired bureaucrat said “This decision will definitely shrink the job market in the state. At this point in time, when there is rampant unemployment, I don’t think this is a wise move to do. He adds that the priority of the government in the current economic climate must be to provide people with jobs wherever possible. Though the state government’s press release announcing the increase in retirement age did not specify any reason, there is widespread speculation that cash crunch might be a major factor.
The decision comes days after the state government decided to freeze the Dearness Allowance for government employees at 17% till July 2021, in line with the decision taken by the central government. This freeze is expected to save at least Rs 4500 crore for the state government, which is cash strapped to fight the uphill battle against COVID-19. The first charge on the funds of the government is to pay salaries, pensions and interest on its debt, says J Jeyaranjan, economist and director of the Institute of Development Alternatives, Chennai.
