Legislation passed to benefit non-pensionable public sector workers

Non-pensionable public sector workers are expected to benefit from greater retirement security after Parliament on Tuesday, July 21, 2026 approved the Compassionate Gratuity for Daily and Minor Salaried Officers Bill. The legislation is aimed at providing financial assistance to eligible daily-paid and lower-salaried government employees upon retirement or death in service, while also allowing qualifying workers the option of remaining in the public service until the age of 65. The legislation establishes a legal framework governing compassionate gratuity payments for eligible workers, replacing what had previously been an administrative practice requiring Cabinet approval. It forms part of a broader package of public service pension reforms intended to deal with long-standing concerns over the treatment of non-pensionable employees, many of whom retire at age 60, but do not become eligible for a National Insurance Services (NIS) pension benefit until age 65.

Introducing the bill in Parliament, Deputy Prime Minister and Minister of the Public Service St. Clair Leacock, said the legislation acknowledges the years of dedicated service given by many of the country’s lowest-paid public officers while providing them with improved financial stability during retirement. Speaking during the debate on July 21, 2026 Leacock highlighted the financial challenges many workers face when they are required to retire at age 60.

“When people retire at age 60 whether they are pensionable or non-pensionable, the year and the number means something.” He said that at age 60, most elderly people are still paying off mortgages, or they experience health issues that they have to pay for, often along with many other financial issues. Leacock noted that while retirement at age 60 has traditionally been the norm within the public service, many private sector employees are able to continue working beyond that age.

“There is not a legal retirement age in the private sector,” and explained that with passage of the bill these category of workers will now have the option to continue working.

“We owe them a duty of care”, he added.

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