Regular staff members of public-sector undertakings (PSU) of The Government of Andhra Pradesh will now retire at the age of 62 instead of 60. This benefit will also be enjoyed by employees of corporations and societies listed under Schedules IX and X of the Andhra Pradesh Reorganisation Act, 2014. The change in retirement age comes into retrospective effect from 1 January 2022.
A government order was issued to this effect on 2 July 2026 and brings regular employees of these bodies on par with staff of the state government.
Court cases involving employees who retired at 60 will also be positively impacted thanks to interim orders that allow them to remain in service for another two years.
Staff members who superannuated at 60 will be re-inducted for two more years, with the gap in service being treated as a without-pay break in service. However, the gap will be taken into account when it comes to yearly pay hikes, promotions and so on.
Employees who choose not to be re-inducted may remain retired at the age of 60 as per the existing rules.
Organisations have been asked to update their service rules, take into account their financial situation before putting the policy into practice, and handle pension benefits in line with these changes.
It is reported that there have been no dearth of court cases in the recent past wherein employees have long been demanding that the retirement age be increased to 62. Many have also been given interim relief.
