The cabinet will introduce compulsory retirement at age 62 in all spheres of public service, government spokesman András Giró-Szász told reporters alongside education state secretary Rózsa Hoffmann on Tuesday.
Hoffmann had earlier said there would be no general pensioning off of teachers.
Health state secretary Miklós Szócska earlier declared it inconceivable that all medical personnel over the age of 62 be forced to retire.
Giró-Szász said forced retirement will occur in one step in some areas and in two stages in others, adding that 10,000 people will be affected.
There are 30,000 people age 62 or older employed in the public sector.
Inter-ministerial negotiations are under way to ensure that the decision does not cause problems in health care or education.