Private sector workers to be allowed to work until 66 under new legislation

Bill will remove requirement for workers to retire at 65, one year before eligibility for State pension

Minister for Enterprise Peter Burke will bring a memorandum to the Cabinet proposing that private sector employees be given the option of staying on at work for another year until they reach the State pension age of 66. Photograph: Sam Boal/Collins Photo
Minister for Enterprise Peter Burke will bring a memorandum to the Cabinet proposing that private sector employees be given the option of staying on at work for another year until they reach the State pension age of 66. Photograph: Sam Boal/Collins Photo

Workers who must retire at 65 under their employment contracts will have the right to remain in work for a further year under new legislation expected to be approved by the Government on Tuesday.

Minister for Enterprise Peter Burke will bring a memorandum to the Cabinet proposing that private sector employees be given the option of staying on at work for another year until they reach the State pension age of 66.

The Bill will effectively create a new employment right for employees whose contracts say they must retire at 65.

Mr Burke will tell colleagues that the Bill will allow them an additional year at work and will mean that the contractual retirement age and the State pension age match each other.

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Until now there was an anomaly where some employees have had no choice except to retire at 65, despite not being eligible to receive a State pension until the following year.

The Bill will implement a key commitment arising from the Pensions Commission’s Recommendations and Implementation Plan.

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The change will primarily affect the private sector as most public sector employees already have the option of remaining at work until the age of 66.

Another memo being brought to Cabinet, by Minister for Justice Jim O’Callaghan, will seek approval for implementation of the EU Migration and Asylum Pact in Ireland.

Ireland and other countries are legally required to submit their National Implementation Plans to demonstrate readiness for the pact from June 2026.

The new pact will introduce stricter rules for migrants and asylum seekers arriving in Europe, including the taking of biometric data, a screening process for applicants from “safe countries” and an accelerated assessment process of 12 weeks for that cohort.

The Minister will tell colleagues he has put in place a pact programme team with input from the Department of Children, Equality and Integration and key agencies including the Garda and the Legal Aid Board.

Minister for Housing James Browne will brief Cabinet on the first meeting of the Limerick Mayoral and Government Consultative Forum, which will be held on Friday.

The Mayor of Limerick has direct access to the Government through a number of channels, including this forum, which is chaired by the Minister for Housing.

The agenda will include housing delivery, transport infrastructure, local Government reform and regional growth.

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times