The Malaysian government confirmed it will maintain the mandatory retirement age for civil servants at 60 years old. The announcement was made by Communications Minister Datuk Fahmi Fadzil during the Cabinet meeting on July 8, 2026. "The government has decided that there is no need to implement an increase in the retirement age at this time. Therefore, the retirement age for civil servants will remain at 60," he said [1].
The decision concludes a period of discussion following signals in 2025 that the retirement age might be raised to 65. Then Minister Datuk Seri Dr Zaliha Mustafa had called for a comprehensive study on the matter, acknowledging the need to consider extending the retirement age but without a final decision [2]. Six members of parliament had proposed raising the retirement age to 65, with concerns about the impact on job opportunities; they suggested phased implementation if adopted [2].
In the same Cabinet meeting, Prime Minister Datuk Seri Anwar Ibrahim addressed feedback on employees’ 0.75% salary contribution for PERKESO’s Non-Employment Injury Scheme (Lindung 24 Jam). As a result, the Cabinet decided to make this contribution voluntary with immediate effect [1, 3].
As of May 31, 2026, only 38.3% of active Employees Provident Fund (EPF) members met the basic savings level required for retirement, totaling 3.04 million members [2]. This statistic adds context to ongoing debates regarding retirement age and financial security.
The government’s latest steps maintain the status quo for retirement while easing financial burden on employees through the PERKESO contribution change [1]. No further changes on retirement age are currently scheduled.
