Working Past 65? Your Paycheck Is Still Taxed, Gov...

Working Past 65? Your Paycheck Is Still Taxed, Govt Confirms

By Nyashadzashe Ndoro - Chief Reporter

The Government has clarified that employees who continue working beyond the official retirement age of 65 will still be taxed in line with the country’s laws, despite concerns over life expectancy and delayed pension payments.

Public Service, Labour and Social Welfare Minister, Edgar Moyo, told Parliament that taxation in Zimbabwe is guided by the Income Tax Act (Chapter 23:06), which applies to all individuals earning income regardless of age.

“The basis of taxation is income earned and not life expectancy,” Moyo said. “However, government is sensitive to the concerns raised. In this regard, the Minister of Finance, Economic Development and Investment Promotion will be engaged to explore possible tax relief or rebate measures for senior citizens who continue to serve beyond retirement age, particularly in specialised fields where their expertise remains essential.”

The issue was raised by Hwange East MP Joseph Bonda, who questioned why government employees who have reached 65 years were still taxed given Zimbabwe’s life expectancy of between 62 and 78 years.

Bonda also expressed concern over delays in pension disbursements, saying many retirees die before receiving their dues, leaving widows without financial support.

In response, Moyo said pension delays were often caused by incomplete documentation. He explained that employees have the option to retire at 65 or extend their service until 70.

“If they retire at 65, they will be paid their lump sum and monthly pension, which is not taxed. If they continue working beyond 65, they remain in employment and are taxed on their salaries until they retire. They will then receive their pensions upon retirement,” Moyo said.