Thiruvananthapuram

The Kerala government is considering raising the retirement age of its employees to 57 years. Discussions with stakeholders are ongoing, and an announcement is expected during the New Year, coinciding with the state budget presentation in February by Finance Minister K.N. Balagopal.

Kerala currently has the lowest retirement age for government employees at 56. This was last increased during Oommen Chandy’s tenure (2011-16), when the age was raised from 55 to 56 years.

A recent committee study suggests that increasing the retirement age by one year could save the government over ₹5,000 crore, redirecting funds from retirement benefits like gratuity to capital projects.

The move could improve the CPI(M)-led government’s image among employees, many of whom are dissatisfied with pending DA arrears of 19%. With local body elections in 2025 and Assembly polls in 2026, the decision is seen as a strategic step by the Vijayan government.