Zimbabwe extends pensionable age for workers to 70

The Ministry of Local Government and Public Works has announced a significant change in the pensionable age for local authority workers, extending it to 70 years, a move that has been welcomed by many but also raises questions about workforce dynamics and retirement planning.

In a circular signed by Minister Daniel Garwe on April 7, 2025, the new directive, which follows the enactment of Statutory Instrument 197 of 2024, outlines new provisions and implementation guidelines aimed at adjusting the retirement age within local authorities.

Under the new directive, local authority workers appointed before January 1, 2025, can retire at the age specified in their contracts. However, they now have the option to continue working beyond the original retirement age up to 70, provided they wish to do so. The circular clearly states, "The mandatory retirement age in local authorities is now 70 years."

"Members appointed before January 1, 2025, are permitted to retire at the age stipulated in their contracts of employment. Members who do not wish to continue serving beyond the age stipulated in their original contracts of employment shall notify the town clerk, town secretary, or chief executive officer in writing, six months before their effective date of retirement, for processing," the circular read.

Additionally, Garwe announced an increase in the stipulated early retirement age for new employees appointed after January 1, 2025. The early retirement age has been raised from 55 to 60 years for these members. However, for those appointed before this date, the early retirement age remains unchanged at 55 years.

"The stipulated age for early retirement for members appointed into the service of local authorities has been increased from 55 years to 60 years," Garwe explained. "However, for those members appointed before January 1, 2025, it shall remain at 55 years."

The circular also emphasized that no new appointments on pensionable terms will be made for individuals aged 55 or older. However, those aged 55 and above can be employed on annually-renewable contracts. These individuals, wishing to renew their contracts, must notify the relevant authorities, who will seek approval from the Minister responsible for Local Government before proceeding with the renewal.

Minister Garwe noted that members who retired on or before December 31, 2024, will not be impacted by the new provisions outlined in this circular.

This change is expected to have significant implications for the local government workforce, with some employees likely to remain in service longer, while others may begin planning for earlier retirement. The policy also aims to ensure that individuals with experience continue to contribute to local government operations, particularly as many sectors face a skills gap.

While the extension of the retirement age offers more flexibility for workers, it also brings attention to the challenges of an aging workforce and the need for robust retirement planning and workforce succession strategies. The shift to a higher retirement age could also influence pension fund management, health care provisions, and the overall structure of local authorities' human resource planning.