Civil Service Retirement Age Review Underway, Final Decision Pending

KOTA BHARU: The proposal to increase the mandatory retirement age for civil servants from 60 to 65 remains under stakeholder consultation, according to Public Service Department (PSD) director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz.

The proposal, outlined in the 13th Malaysia Plan (13MP), calls for a detailed feasibility study on extending the retirement age in line with demographic changes and national workforce needs.

Wan Ahmad Dahlan said PSD has so far held engagement sessions with key stakeholders, including the Congress of Union of Employees in the Public and Civil Services (Cuepacs) and various retirees’ associations, to gather preliminary feedback.

“Since this is an unusual and significant measure, it requires careful evaluation to ensure any decision taken will benefit all parties,” he told reporters after meeting Kelantan state retirees on Tuesday (Nov 18).

He noted that Cuepacs had conveyed mixed views, with some supporting the proposal and others raising concerns.

“At this stage, we are considering all perspectives to ensure the final outcome has positive implications for civil servants, the government, and the country. The consultation process is ongoing, and no decision will be made until the review is fully completed,” he added.

Prime Minister Datuk Seri Anwar Ibrahim, during the tabling of the 13MP in the Dewan Rakyat on July 31, had said that the retirement age review was necessary due to Malaysia’s aging population. The study will also take into account financial implications, workforce supply, and employment opportunities for younger Malaysians.

In May, Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said suggested raising the retirement age to 65, noting that Malaysians in that age group remain healthy and capable of contributing productively.

Currently, the mandatory retirement age for civil servants is 60, which aligns with the minimum retirement age for private-sector employees under the Minimum Retirement Age Act 2012.