The Maldivian government has announced that high-income earners will no longer qualify for the monthly MVR 5,000 basic pension currently provided to all Maldivians over the age of 65. This change, set to take effect in April 2025, is part of a broader series of financial reforms aimed at reducing state expenditure.
Outlined in the 2025 budget, this shift to a targeted pension scheme focuses on providing the allowance to low-income individuals over 65, ensuring sustainable state spending on pensions. Under the new plan, only those turning 65 after April 2025 will be affected by these changes, which do not impact current pension recipients.
Additional reforms proposed include:
- Full implementation of the pension framework under the new pay structure.
- Harmonization of allowances across different sectors.
- Legal adjustments around early retirement.
The Finance Ministry expressed confidence that these reforms would enhance long-term fiscal sustainability without impacting the pensions of eligible citizens who rely on these funds.
