Akta Umur Persaraan Minimum 2012
Applies to: Federal Act · Official text ↗
- Sets the minimum retirement age at sixty years (s 4(1)).
- Prohibits employers from prematurely retiring employees before the minimum age (s 5(1)).
- Allows employees to retire earlier if agreed in their contract or collective agreement (s 6).
- Invalidates any contract terms that set a retirement age lower than the minimum (s 7(1)).
- Allows employees to complain to the Director General within sixty days of premature retirement (s 8(1)).
- Permits the Director General to order reinstatement or compensation for premature retirement (s 8(5)(b)).
- Allows appeals to the High Court against the Director General's decision (s 10(1)).
- Excludes persons specified in the Schedule from the Act's application (s 2(1)).
What this law is
The Minimum Retirement Age Act 2012 (Akta Umur Persaraan Minimum 2012) is numbered Act 753 in the Laws of Malaysia.
Its long title, as printed in the official text: An Act to provide for the minimum retirement age and for any related matters thereto.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–3)
- Part II — Minimum retirement age (ss 4–7)
- Part III — Complaints and inquiries (ss 8–11)
- Part IV — Investigation and enforcement (ss 12–14)
- Part V — General (ss 15–19)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Employee must complain to the Director General after premature retirement | within sixty days from the date of the retirement | s 8(1) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Employer prematurely retires an employee before the minimum retirement age | fine not exceeding ten thousand ringgit | s 5(2) |
| Employer fails to comply with the direction of the Director General | fine not exceeding ten thousand ringgit | s 11(1) |
Laws cited on this page
| Act 177 | Industrial Relations Act 1967 Akta Perhubungan Perusahaan 1967 (Terjemahan 1976) Our guide → | PDF · Official ↗ |
| Act 753 | Minimum Retirement Age Act 2012 Akta Umur Persaraan Minimum 2012 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1 | The Act comes into operation on a date appointed by the Minister, which may differ for different provisions. |
| s 2 | The Act does not apply to persons specified in the Schedule, which the Minister may amend by order. |
| s 3 | Defines key terms such as 'employee', 'employer', 'retirement', and 'premature retirement' for the purposes of the Act. |
| s 4 | Establishes that the minimum retirement age is sixty years, though the Minister may prescribe a higher age. |
| s 5 | Prohibits employers from prematurely retiring an employee before the minimum retirement age, with a fine of up to ten thousand ringgit for contravention. |
| s 6 | Allows an employee to retire before the minimum age if an optional retirement age was agreed in the contract of service or collective agreement. |
| s 7 | Declares any contract term setting a retirement age lower than the minimum to be void and substitutes the minimum age. |
| s 8 | Outlines the process for employees to complain to the Director General about premature retirement and the potential remedies, including reinstatement or compensation. |
| s 10 | Allows a person dissatisfied with the Director General's decision to appeal to the High Court. |
| s 11 | Makes it an offence for an employer to fail to comply with the Director General's direction, with a fine of up to ten thousand ringgit. |
| s 16 | States that no prosecution for an offence under the Act can be instituted without the written consent of the Public Prosecutor. |
| s 17 | Allows the Director General to compound certain offences by accepting a payment of up to fifty per centum of the maximum fine. |
Worked examples
Facts. Ahmad, a 55-year-old employee in Peninsular Malaysia, has a contract stating he must retire at 55. His employer terminates his employment at 55.
The law. The minimum retirement age is sixty years (s 4(1)). Any retirement age in a contract less than the minimum is void and substituted with the minimum age (s 7(1)). Premature retirement is prohibited (s 5(1)).
Outcome. Ahmad's retirement is considered premature. He can complain to the Director General within sixty days (s 8(1)). The Director General may order reinstatement or compensation (s 8(5)(b)).
Facts. Siti's collective agreement allows optional retirement at 58. She chooses to retire at 58.
The law. An employee may retire on reaching the optional retirement age agreed in the contract of service or collective agreement (s 6). Optional retirement under s 6 is not a premature retirement (s 5(3)).
Outcome. Siti's retirement is not a premature retirement, so the employer commits no offence (ss 5(3), 6).
Facts. Rahim, an employer in Sarawak, is ordered by the Director General to reinstate an employee but refuses to do so.
The law. Failing to comply with the Director General's direction is an offence (s 11(1)). The court may order the employer to pay the amount directed (s 11(2)).
Outcome. Rahim commits an offence and is liable to a fine not exceeding ten thousand ringgit (s 11(1)). The court may also order him to pay the reinstatement amount (s 11(2)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Can my employer force me to retire before I turn 60?
No, an employer shall not prematurely retire an employee before the employee attains the minimum retirement age of sixty years (s 5(1)). Doing so is an offence (s 5(2)).
What if my contract says I must retire at 55?
Any retirement age in a contract of service less than the minimum retirement age is deemed void and is substituted with the minimum retirement age (s 7(1)).
Can I retire before 60 if I want to?
Yes, an employee may retire upon attaining the age of optional retirement as agreed in the contract of service or collective agreement (s 6).
What can I do if I am retired before 60?
You may complain in writing to the Director General within sixty days from the date of the retirement (s 8(1)). If you choose that route, you cannot make a representation under s 20 of the Industrial Relations Act 1967 until the complaint is resolved (s 8(2)). If the Director General finds you were prematurely retired, he may direct reinstatement with arrears of wages, or compensation (s 8(5)(b)).
Can I appeal if the Director General dismisses my complaint?
Yes, a person who is dissatisfied with the decision of the Director General may appeal to the High Court (s 10(1)).
Does this law apply to everyone?
No. It does not apply to the persons specified in the Schedule (s 2(1)), and the Minister may exempt employers or classes of employers (s 18).
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Sources
Related
Employment law: your rights at workEmployment Act 1955Industrial Relations Act 1967