Government Raises Workers Retirement Age To 60

The government has recently raised the mandatory retirement age to 60, adding two more years for workers. This change comes through a new ordinance.

The Ministry of Labour, Employment, and Social Security had suggested setting the retirement age at 60 under the Labour Act. Although this change was not passed through Parliament, the Cabinet decided on January 10 to make the adjustment through an ordinance that amends certain laws in Nepal.

The ordinance, which was recommended by the government, has been signed by President Ramchandra Paudel and will take effect once it is published in the Nepal Gazette.

According to Danduraj Ghimire, the spokesperson for the Ministry of Labour, Employment, and Social Security, the retirement age has now been raised from 58 to 60.

The Labour Act, 2074 (2017) originally set the retirement age at 58 for workers in regular employment, as stated in Section 147. If workers needed to retire earlier than 58 due to the nature of their work, they could seek permission from the Central Labour Advisory Council as per the regulations.