Bengaluru: The proposal to increase the retirement age for private sector was approved by the Karnataka Cabinet on 24th March Friday.
The retirement age for private sector has been raised to 60 years from the present 58 years.
In order to give effect to this proposal, the Schedule I of Karnataka Industrial Employment (Standing Orders) rules 1961 will be amended.
According to the sources at Law Department, the law will not be applicable to IT and ITES companies. But according to Labour Minister, Santosh, the new rule will be applicable to all the private sector employees, including the ones from IT and Bio-Tech sectors.
"From the mid-1990s, IT, BT and BPO firms have been exempt from the rules as far as retirement age is concerned", said Madhu Damodaran, head of legal operations at ‘Simpliance’, a labour law compliance firm.
It is said that around 7 lakh workers from shops and commercial establishments and about 14 lakh workers in factories will benefit in this move.