RETIREMENT AGE

'If bosses can retire anytime, why can't the employee work beyond age 55?' lamented one senior employee from a local company.

Unfortunately, same cannot be said particularly in Malaysia. The standard retirement age in Malaysia for most private companies is still at 55, of some companies allow its employees to retire at age 50 (optional early retirement). There is no mention of any age of retirement in the Employment Act 1955 either.

With the Government's move comes after the proposal to raise its civil servant retirement age to 60 from 58, most private companies reluctant to do so. Mostly all... Private companies are most comfortable in allowing its employees to retire at aged 55. This is probably due to most employees aged 50 to 55 hold higher position that commanded higher salary. Higher salary that could come with higher perks and fringe benefits. Replacing them with junior managers with lower pay could possible solve this issue, no doubt one cannot compare the experiences, knowledge and capability between both of them.

Employers may also resort in using KPI to oust its employees. Unlike in those days, employees now are placed in a desperate situation to achieve their KPI given by the bosses. Should they are not able to achieve it, bosses would have its every strong reason to kick them out of the employment, particularly those in their retirement years.

Outsourcing firms also plays a big part in influencing the private companies not to extend the retirement age. Outsourcing firms, mostly handling IT, HR, etc shared services, singled handly put those inhouse shared services of the private companies, cold storage. Paying a sum handsomely to those outsourcing firms, is much better than rewarding the employees with the salaries, perks, benefits, compensations.

It is still a long way to come to a point private companies agreed to prolong retirement age to 60 from 55. More discussions, forums, dialogs round table should be held, and amending its labour laws by including retirement age is a must too. However, one must put aside costs to be incurred in extending their employment, fewer job opportunities for young job seekers, fewer promotion opportunities.