Wealthy to be exempt from MVR 5,000 old-age allowance

The Maldivian administration has made the decision to exempt individuals belonging to high income groups from the old-age basic pension of MVR 5,000 that is currently paid monthly to all Maldivian citizens above the age of 65.

The proposed change is part of a string of reforms the government plans to implement next year to cut down spending.

According to the 2025 budget book, changing the old-age basic pension to a targeted one is the chief among reforms aimed at sustainable management of state spending on pensions.

The Finance Ministry said that starting April next year, the old-age basic pension will only go to people above the age of 65 who belong to the low-income group.

According to the ministry, the change will take effect on April next year, and will apply only to people who turn 65 after that date.

Other reforms planned by the government includes:

• Full implementation of pension framework under the new pay framework
• Harmonizing allowances between different institutions
• Make legal reforms regarding early retirement

Finance Ministry believes the changes will help the state manage spending on pensions at a more sustainable level. But it also provided assurance it will not affect the pensions paid to people who are rightly entitled to it.