A previously proposed incentive to retain workers past retirement age may also be pending
Government is encouraging employers to keep older Bermudians in the workforce – and we wait to see if a previously promised incentive for doing so is part of the upcoming budget.
A new policy guide for employers, released by the Ministry of Economy & Labour, once again cites an aging population and declining birth rate.
“These changes are likely to result in difficulties for employers in filling job vacancies”, the document states, and organisations will need to adapt to evolving workforce expectations and skill gaps.
The document provides a guide to implement age-inclusive strategies to address labour shortages, and reduce pressure on the contributory pension fund.
The guide lists advantages for employers that retain and re-engage workers 65 and older – such as access to experienced staff, inter-generational skills transfer, and better economic resilience.
The OECD and the Singapore Ministry of Manpower are also cited, suggesting evidence that employers who manage age diversity benefit from higher productivity and lower turnover.
The guide itself breaks down the considerations and potential actions employers can take – including possible challenges and solutions.
Such actions include… programmes that allow employees to continue after mandatory retirement age on reduced hours or phased retirement; flexible work schedules and part-time roles; and mid-career programmes targeted at workers in their 40s and 50s to keep their skills current.
The guide also recommends removing age-based phrasing, such as “digital native” or “recent graduate”, and focusing on competency and skills.
Jobs can also be redesigned, the guide states, to reduce physical strain and cognitive load, including the use of ergonomic equipment.
The guide acknowledges potential problems, such as workplace resentment over perceived preferential treatment, or the cost of ergonomic changes to a worker’s environment.
A clear rationale for implementing any changes must be communicated to all employees, the guide says, and physical workplace changes should initially focus on low-cost fixes for high-impact roles.
It also remains to be seen if or how a cost-saving incentive that was promised in the 2024 Throne Speech comes to fruition this year.
The November 2024 Throne Speech stated, “…to encourage the retention of those Bermudians over 65 who wish to continue working, the Government will bring legislation to eliminate the employer’s portion of payroll tax for those Bermudian employees so retained.”
The policy guide released today reiterates that “payroll tax does apply to remuneration paid to those over the age of 65.”
However, the recent Pre-Budget Report includes a proposal to reduce or eliminate payroll taxes for employers that retain employees over 65, so we will find out in February if that Throne Speech pledge will be kept – whether in full or in part.
Employment figures already suggest that more workers over 65 are being retained.
More than 3,000 were employed past age 65 in 2024 – a 7% annual increase and the highest number since records began.
More than four fifths of those, or 85.5%, were Bermudians.
Jason Hayward, Minister of Economy & Labour, encourages employers, HR leaders, unions, and industry partners to review the guide released today and incorporate its recommendations.
He says, “building age-inclusive policies today will help secure a more stable and sustainable labour market for the future.”
WATCH our report above; READ the policy guide below…
Press Release from Jason Hayward, Minister of Economy & Labour
The Ministry of Economy and Labour today announced the release of the Retaining Bermudian Workers Aged 65+ Policy Guide for Employers (attached), a comprehensive resource designed to help organisations retain, re-engage, and support Bermudian workers aged 65 and older as part of a broader national strategy to strengthen the workforce.
Bermuda, like many advanced economies, is experiencing significant demographic change. An ageing population, declining birth rate, and acute labour shortages across multiple sectors have increased the urgency for employers to adopt age-inclusive workforce practices. The new guide provides practical tools, drawn from global best practice, to help employers respond effectively.
Minister of Economy and Labour, the Hon. Jason Hayward, JP, MP, emphasised the importance of leveraging the experience and expertise of older Bermudians, stating, “Bermuda’s demographic reality is clear, we are an ageing society with a shrinking labour pool. To maintain a strong economy and ensure continuity across essential services, we must retain the skills, knowledge, and mentorship capacity of our older Bermudian workers. This guide provides employers with the practical strategies they need to do just that.”
The Age Retention Policy Guide outlines a range of evidence-based approaches that employers can implement, including:
- Phased retirement and structured re-employment
- Flexible and part-time work options
- Skills-based hiring and the removal of age-biased recruitment language
- Continuous training and mid-career reskilling
- Structured mentorship and knowledge transfer programmes
- Job redesign and ergonomic adjustments to support productivity
- Opportunities for second careers and consulting roles
In addition to strategy guidance, the document includes sample policy wording, implementation steps, and success metrics to help organisations build age-inclusive practices into their broader workforce planning. These tools support better succession planning, lower turnover, and stronger operational resilience.
Minister Hayward, underscoring the essential role older Bermudians play in strengthening the workforce and urging employers to take an active role in addressing the island’s demographic challenges, explained, “Workers aged 65 and older contribute reliability, leadership, institutional knowledge, and long-standing client relationships. Retaining even a small fraction of this talent significantly strengthens our workforce. Age inclusion is not just a social good; it is a strategic economic imperative. Demographic change affects every business in Bermuda, and I strongly encourage employers, HR leaders, unions, and industry partners to review this guide and incorporate its recommendations. Building age-inclusive policies today will help secure a more stable and sustainable labour market for the future.”
The Age Retention Policy Guide for Employers is now available to all organisations and can be accessed through the Ministry of Economy and Labour’s website.
The Ministry of Economy and Labour will continue working with employer groups, unions, and industry stakeholders to support the adoption of age-inclusive practices across the economy.
