The Ministry of Local Government and Public Works has moved to clarify retirement conditions for employees in local authorities through the implementation of Statutory Instrument 197 of 2024, which came into effect on 1 January 2025. The directive, circulated to all local authorities, introduces key adjustments to the retirement framework, setting clear guidelines on early and mandatory retirement ages, appointment conditions, and contract renewal procedures.
Under the new regulation, the early retirement age for members appointed into local authority service on or after 1 January 2025 has been raised from 55 to 60 years, with a mandatory retirement age set at 70 years. However, those appointed before the 2025 cut-off date will retain their early retirement threshold at 55, creating a transitional arrangement between old and new retirement provisions. The government emphasized that employees who do not wish to continue beyond the original terms of their contracts must notify their respective Town Clerks, Town Secretaries, or Chief Executive Officers in writing, at least six months before the intended date of retirement.
Further, the Ministry made it clear that no individual can be appointed on pensionable terms at or beyond the age of 55. Those who reach this age may, however, be engaged on one-year renewable contracts. In such cases, renewal is subject to ministerial approval following standard recruitment procedures. This mechanism is aimed at accommodating experienced professionals while ensuring accountability and alignment with public service standards.
Employees who retire on or before 31 December 2024 are not affected by these new provisions, thereby safeguarding the expectations and entitlements of those already in the process of retirement. Local authorities are now expected to ensure that all relevant personnel are aware of these changes and that implementation is consistent across the board. The Ministry emphasized that interpretation of the directive rests with the Minister of Local Government and Public Works, underscoring the central role of the Ministry in guiding human resources policy within the public service sector.
As the retirement age rises in line with broader reforms, the directive aims to create a more streamlined, predictable, and legally sound framework for public service employment. However, it will also require local authorities to proactively manage staff transitions, address succession planning, and balance institutional memory with the inclusion of younger professionals in service.
