PETALING JAYA | Staff at commercial banks can now retire after they reach 61 years old, a year older than most other workers in the country.
National Union of Bank Employees general secretary J Solomon said the new mandatory retirement age was included in the new collective agreement signed with the Malaysian Commercial Banks Association.
“The staff will be considered full time and not on contract for the additional year, which means they will receive all their existing benefits,” he told FMT.
He said the banks agreed to the union’s request to raise the retirement age to help boost the retirement savings of workers in the B40 (lower-income) and M40 (middle-income) groups.
“The union had asked for the retirement age to be increased to 65, but the MCBA was concerned about the health of these workers.
Solomon said the extension is subject to workers’ health and will be voluntary.
Workers are often required to retire after turning 60, with those retained afterwards typically kept on a contract basis.
The new collective agreement provides a 15% to 18% rise in salaries, an allowance of one month’s salary for festive occasions, and a higher waiver for housing loans.
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