Ministry of Human Resources Evaluating Proposal to Raise Retirement Age to 65
The Ministry of Human Resources has confirmed that it is currently studying a proposal to raise the mandatory retirement age in Malaysia from 60 to 65 years.
Mandatory or Minimum Retirement Age
Currently, the mandatory or compulsory retirement age for civil servants (who are appointed on or after 1 January 2012) in Malaysia is 60.¹ For private sector employees, their retirement age is in accordance with the terms of their employment but subject to the minimum age of 60, pursuant to the Minimum Retirement Age Act 2012.² While it has been reported that the proposal is for raising the ‘mandatory’ retirement age, it is likely that the proposal is for raising both the mandatory retirement age for civil servants and the minimum retirement age for private sector servants, from 60 to 65 years of age.
