The Government is going to introduce a national pension scheme to cater for Zimbabwe's workers, the Minister of Labour and Social Services, Mr Kumbirai Kangai, told the Assembly during the debate on his ministry's expenditure estimates.
"It is a matter which causes a great deal of concern," he said, "that some workers who had given years of service found themselves pensionless and destitute when they left their jobs.
"The Cabinet has already approved proposals from my ministry on this subject."
Mr Dzikamai Mavhaire (ZANU-PF, Victoria) suggested that the various funds for caring for old people may undermine African culture, according to which the children traditionally looked after their aged parents.
The minister disagreed, and said this was not a scheme to cater for the entire aged population, but mainly for expatriates who left their own countries many years ago and had "given the better part of their lives to this country". He said it was the responsibility of this country, therefore, to look after them.
Mr Kangai also told the House that an official from the International Labour Organisation recently spent two weeks in Zimbabwe assessing the feasibility of introducing a national pension scheme.
Commenting on concerns expressed by Mr Henry Elsworth (RF, Midlands) over the plight of small mines which he said might be forced to close down or discharge workers because of their inability to pay the minimum wage, Mr Kangai said his ministry would step in where such situations arose to try to "arrest" the situation.
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Replying to a call by Mr Sydney Malunga (PF, Matabeleland North) for an increase in the minimum wage of $85 a month, Mr Kangai said that he hoped that in the not-too-distant future the Government would announce its plans on this issue.
Commenting on the $43 million earmarked for demobilisation gratuities for former combatants will opt to leave the army, Mr Kangai said: "The $43 million is not the celling. It is just a bare minimum to get the scheme going".
Lessons for today
- A national pension scheme aims to provide financial security for individuals during retirement. The design of a pension scheme must consider factors such as demographic trends, economic conditions, and existing social safety nets.
- The feasibility of a national pension scheme, is a significant step towards enhancing social security for the citizens. The need for such a scheme arises from various socio-economic factors, including an aging population, increasing poverty levels among the elderly, and the inadequacies of existing pension systems.
- Current pension schemes cover only a small percentage of the population, leading to significant gaps in social security.
- The existing pension framework in Zimbabwe primarily consists of private pension schemes and limited government-sponsored programmes. However, these systems have faced numerous challenges.
- A large portion of the workforce is employed informally, which means they do not contribute to any pension schemes. This lack of coverage leaves many without financial support in old age.
