While the introduction of the controversial Generalised Social Contribution (CSG) is being contested before the Supreme Court, the Government seems resolved to go ahead with the new scheme.
The Social Contribution and Social Benefits Bill will be presented to the National Assembly by Finance Minister Renganaden Padayachy on Tuesday July 13.
According to Cabinet papers, the new Bill (to replace the National Pensions Act) will provide a comprehensive regulatory framework to give full implementation for the administration and operation of the new system.
The mechanism intends to, “mostly benefit those at the lower-end of the ladder, as well as self- employed and small and medium enterprises.”
The deal is that, in addition to the basic retirement pension payable under the National Pensions Act, the pensioner will receive a guaranteed monthly retirement benefit. The Bill also provides for the payment of other enhanced social benefits such as industrial injury benefit, disability benefit, survivor’s benefit, orphan’s benefit and other social benefits – current benefits payable under the National Pensions Act are said to be less.
In addition, the Bill provides for the setting up of a Social Benefits Review Committee “to devise and develop mechanisms with a view to enhancing these social benefits and maintaining their sustainability for the future.”
Business Mauritius and other parties contesting the application of the CSG have not yet commented.
