The decision was announced by National Conference and Congress ministers at two separate press conferences here, after the state cabinet acceded to the employees' demand at a meeting chaired by Chief Minister Omar Abdullah.
The state government employees' unions had taken to the street a number of times over the past eight years, demanding enhancement of the retirement age, and a delegation also met the Chief Minister earlier today.
Finance Minister Abdul Rahim Rather said the cabinet also approved increase in the upper age limit for recruitment in government jobs from 37 to 40 years.
Deputy Chief Minister Tara Chand, accompanied by several Congress ministers, held a separate press conference to announce the cabinet decisions.
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Earlier in the day, Chief Minister Omar Abdullah met a delegation of employees' representatives and announced his intention to enhance the retirement age.
"I will strongly advocate for the enhancement of age issue in the cabinet and make sure that it is approved to the best satisfaction of the employees," Omar told the delegation.