Andhra Pradesh hikes retirement age to 62 for PSU and corporation staff
The Andhra Pradesh government has increased the retirement age from 60 to 62 years for regular employees of Public Sector Undertakings (PSUs), corporations, and societies listed under Schedules IX and X of the Andhra Pradesh Reorganisation Act, 2014. The decision, announced through Government Order Ms. No. 45 issued by Principal Secretary (Finance) Peeyush Kumar on July 2, 2026, takes effect retrospectively from January 1, 2022.
This extension aligns the retirement age for these employees with that already applicable to state government employees under the Andhra Pradesh Public Employment (Regulation of Age of Superannuation) (Amendment) Act, 2022.
The government stated that the move responds to numerous employee representations and litigation where courts had allowed staff to continue serving until age 62 through interim orders.
Employees who retired upon reaching 60 years will be re-inducted or allowed to continue in service until 62, where applicable. The period between retirement and re-induction will be treated as out of employment without salary, though annual increments during that time will be granted notionally and counted for seniority and promotions.
The order also requires organisations to amend their service rules, assess their financial capacity before implementing the policy, and process pensionary benefits accordingly. Retired employees who do not wish to rejoin may continue to remain retired at 60 years under the existing rules.
