Retirement letter template
Copy the text below and replace everything in square brackets with your company details.
[Company Name]
[Office Address]
[City], [State] [PIN Code]
Date: [Date]
Ref: [Company Code]/HR/RET/[Year]/[Number]
To
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Retirement on superannuation
Dear [Employee Name],
As per our records, your date of birth is [Date of Birth]. In accordance with [clause Clause Number of your appointment letter / the company's retirement policy], which sets the retirement age at [Number] years, you will retire from the services of [Company Name] on superannuation at the close of working hours on [Retirement Date].
You joined us on [Date of Joining] as [First Designation], and over [Number] years you have [specific contribution, for example: built our Vapi plant's maintenance team from four technicians to thirty and trained most of our senior engineers]. On behalf of the management and your colleagues, we thank you for your long and dedicated service.
Your retirement dues will include the following, subject to exit formalities:
- Salary up to the retirement date, paid within two working days of that date.
- Gratuity for [Number] completed years of service at 15 days' wages for each completed year, on your last drawn wages.
- Encashment of your earned leave balance as per the leave policy.
- Your PF balance, which you can withdraw through the EPFO, and pension under the Employees' Pension Scheme as per its rules. HR will help you with the forms.
- [Any retirement benefit under company policy, for example: a long service award or continued group medical cover for one year.]
Please plan the handover of your responsibilities to [Successor Name or: a successor who will be named by Date] with [Manager Name], and complete the exit formalities, including return of company property, before your retirement date. HR will contact you in [Month] to begin the paperwork for your dues.
[If the company wishes to retain the employee's services: The company would like to discuss a possible engagement after retirement as [Role], on terms to be agreed separately. [Manager Name] will speak with you about it.]
With our best wishes for a healthy and happy retired life.
Yours sincerely,
For [Company Name]
[Signatory Name]
[Signatory Designation]
Acknowledgement
Received. I note that my date of retirement is [Retirement Date].
Name: [Employee Name]
Signature: ____________
Date: ____________
What to include
Retirement date from records
Work out the date from the date of birth on record and the retirement age in the appointment letter or policy, and state both. Errors in the date of birth are best found now, not on the last day.
Advance notice
Three to six months gives the employee time to plan finances, housing and health cover, and gives the department time to train a successor.
Dues explained in plain words
List gratuity, leave encashment, PF and pension, and say HR will help with the forms. Gratuity becomes payable once a person has five years of continuous service, and works out to 15 days' wages for every completed year, calculated on the last drawn wages.
Recognition that is specific
Name a real contribution the person made. A retirement letter is often kept for life, and a specific line of thanks means far more than a standard phrase.
Post-retirement engagement kept separate
If the company wants to retain the person as a consultant or on a fixed term, mention it separately and agree terms in a fresh contract, not in the retirement letter.
Common mistakes to avoid
- Sending the letter a few days before the retirement date.
- Using a date of birth that differs from the documents on file.
- Leaving the employee to find out alone how to claim PF and pension.
- Delaying gratuity and other dues for months after retirement.
- Letting the retiree continue working after the retirement date with no written terms.
Run it in ZeniaHR
The employee record in ZeniaHR holds the date of birth and joining date that decide the retirement date, so HR can check them against the documents on file well before the letter goes out. On retirement, HR records the exit through offboarding with the matching exit reason and completes the exit checklist. Direct Payroll bounds the final month by the exit date, leave encashment for encashable leave types adds a payroll earning, and the gratuity report helps check the amount. Keep the letter in the employee's documents.
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Book a free demoSee pricingFrequently asked questions
What is the retirement age for private sector employees in India?
There is no single retirement age fixed for all private employers; it is set by the company's policy, the appointment terms or the applicable standing orders, commonly 58 or 60 years. State it clearly in the appointment letter and apply it the same way to everyone.
What dues does a retiring employee get?
A retiring employee gets salary up to the retirement date, gratuity if they have five years of continuous service, encashment of earned leave as per policy, any bonus due, and their PF balance and pension under EPFO rules. Company schemes such as long service awards are added where they exist.
How early should a retirement letter be issued?
Issue it three to six months before the retirement date. That gives the employee time to plan and the department time to find and train a successor. Some companies send a first intimation a year ahead and a formal letter three months before.
Can a company re-employ someone after retirement?
Yes, a company can engage a retired employee as a consultant or on a fixed-term contract after the retirement date. Issue a fresh contract with the role, period and pay, because the original employment ends on retirement and its dues are settled at that point.