Government Increases Retirement Age for Class 3 Employees to 62

The Central Government has announced a big change for its workers. From June 2025, all Class 3 employees can now work until they turn 62 years old instead of 60. This rule applies to many departments like Railways, Income Tax, Post Office, and more.

What’s New in the Rule?

Retirement age increased from 60 to 62 years

Applies to all Class 3 Central Government employees

Starts in June 2025

Employees retiring in 2025-26 will also benefit

More working years = higher pension and benefits

Who Are Class 3 Employees?

Class 3 government staff are the ones who do important support jobs in government offices. They aren’t officers but help keep the system running.

Some examples:

Lower and Upper Division Clerks (LDC, UDC)

Typists

Assistants

Data Entry Operators

Lab and Library Assistants


They work in places like schools, railways, banks, and tax offices.

How Does This Help Employees?

This rule is great news for workers. Here’s how:

1. More Job Security:
Get 2 more years to work and earn a salary.

2. Bigger Pension:
Pension depends on your last salary. More work = more money.

3. Higher Gratuity:
Gratuity is a retirement bonus. It will increase too.

4. Promotion Chances:
You might get promoted during the extra 2 years.

Quick Comparison: Old vs New Rule

Benefit Retire at 60 Retire at 62 Gain

Final Salary ₹68,000 ₹72,000 ₹4,000 More
Pension/Month ₹34,000 ₹36,000 ₹2,000 More
Gratuity ₹19.5 Lakh ₹21 Lakh ₹1.5 Lakh More
Total Benefits ₹30 Lakh ₹32.5 Lakh ₹2.5 Lakh More
Health Cover Ends at 60 Ends at 62 2 Extra Years

Where Will This Rule Apply?

Departments with many Class 3 employees will be affected:

Railways: 4.2 lakh+ employees

Post Office: 1.8 lakh+

Secretariat, Income Tax, Education, PSUs, and more

Why the Government Made This Change

To keep experienced staff longer

To delay big pension payouts

To reduce mass retirements

To match international retirement trends

To cut down on frequent hiring

What Employees Should Do Now

If you’re close to 60:

Talk to your HR office for official notice

Update your service records

Re-check your pension numbers

Plan for health insurance and finances

Will States Follow This Rule Too?

Some states like Maharashtra, Karnataka, and Tamil Nadu are also thinking about similar changes. State government employees should stay alert for updates.

Final Thoughts

Raising the retirement age to 62 is a smart move. It helps hardworking employees and also helps the government run smoothly. With more time to work, earn, and grow, this rule brings a lot of benefits to both sides.