The Andhra Pradesh Cabinet has approved raising the retirement age of public sector unit, corporation and society employees from 60 to 62 years. The decision came at a Cabinet meeting on June 23, 2026, chaired by Chief Minister N. Chandrababu Naidu, which cleared a total of more than 80 proposals.
The retirement-age relaxation applies to employees of Schedule IX and X institutions, PSUs, corporations and societies. It brings these employees in line with the longstanding demand to match the retirement age extended to regular state government employees.
The same meeting carried two other major workforce decisions. The Cabinet approved a one-time option for eligible Contributory Pension Scheme employees to switch to the Old Pension Scheme, a move set to benefit around 10,715 employees whose recruitment notifications were issued before September 1, 2004, but who joined service later.
The estimated long-term financial impact on the state is pegged at about ₹34,850 crore. Separately, the Cabinet cleared roughly ₹34,000 crore in investment proposals from the AP State Investment Promotion Board, expected to generate around 35,000 jobs across hospitality, tourism and infrastructure.
