President Dr. Mohamed Muizzu has rescinded a directive to end non-contributory retirement benefits, a measure previously slated to take effect on January 1 as part of the governmentâs economic reform agenda.
The decision, announced during a Cabinet meeting on December 1, 2024, comes in response to widespread concerns over the planned changes. The President presented a paper addressing the issue, highlighting feedback from various sectors regarding the impact of reducing retirement pensions at this time.
Following the deliberations, President Muizzu instructed the Ministry of Finance to withdraw its earlier communication to institutions about the cessation of these benefits. The government emphasized its commitment to addressing public concerns, ensuring that retirement allowances remain intact while economic reforms are implemented.
Transition to New Pay Structure
It was also clarified that the retirement pension process for individuals transitioning to the new pay structure will remain unchanged until all affected parties have fully integrated into the updated system. This move is intended to provide stability and continuity as the government works toward broader economic reforms.
The decision reflects the administrationâs responsiveness to public sentiment and its intent to balance fiscal responsibility with the welfare of retirees.
