India faces age-related discrimination at work

Source: The post India faces age-related discrimination at work has been created, based on the article “The ageism debate: India will gain from raising the retirement age” published in “Business standard” on 7th June 2024.

UPSC Syllabus Topic: GS Paper 1- social issue and GS Paper 3- economy-employment

Context:  The article discusses how both young and older workers in India face age-related discrimination at work. It highlights how such issues might grow as India’s population ages. It suggests considering raising the retirement age to utilize the experience of older workers more effectively.

What is the Demographic Projection for India?

The UN Population Fund projects a sharp rise in the elderly population’s growth rate, from 35.5% (2011-21) to 41% (2021-31). By 2046, the elderly population will surpass children under 15 years.

What is Age-Related Discrimination in Indian Workplaces?

Prevalence: 40% of employees experienced or witnessed age-related discrimination.

Younger vs. Older Workers: 42% of employees below 55 faced discrimination, compared to 29% of those over 55.

Compensation Issues: 32% of employees under 35 feel inadequately compensated.

Job Advertisements: 61% report age or experience criteria in job ads, with multinationals leading this trend.

Gender Disparity: 42% of women report discrimination, compared to 37% of men.

How Does India’s Retirement Age Compare Globally?

1. India’s retirement age is 58-60 for most workers, with 70 for whole-time directors and 75 for non-executive directors.
2. Advanced countries like Iceland, Australia, Spain, and Italy set retirement ages at 66-67.
3. France faced protests over proposals to raise the pension age from 62 to 64.
4. Singapore recently raised the retirement age from 63 to 64 and the re-employment age from 68 to 69.

What should be done?

Raise Retirement Age: Increase the retirement age to benefit from older workers’ experience. India’s current retirement age is 58-60 years, while countries like Iceland and Australia set it at 66-67 years.

Prepare for Demographic Changes: Plan for an ageing population. The UNPF projects the elderly population will surpass children by 2046, necessitating policy adjustments.

Question for practice:

Discuss the potential impact of raising the retirement age in India on addressing age-related discrimination and leveraging the experience of older workers in the workforce.