Government Nears Final Decision on Pension Reforms for Ages 60-65

The government is moving closer to finalizing its pension reform plans for people aged 60 to 65, announced in the 2025-26 budget. Key meetings are scheduled this week to review options, including a possible income-based financial support system.

On June 25, a committee led by Ashok Subron met to discuss these reforms. Since then, officials have been exploring different approaches to balance budget constraints with social needs.

On July 1, two committees separately refined their proposals. The following day, leaders from the Alliance du Changement—comprising the Labour Party, Mouvement Militant Mauricien, Rezistans ek Alternativ, and Nouveaux Démocrates—met to align their positions.

A crucial joint meeting, chaired by Prime Minister Navin Ramgoolam, took place on July 3 at 10 a.m. This session was described as “decisive” for the reform process.

The final decision is expected at the Cabinet meeting on Friday, 27 June, which might include a special session dedicated solely to this issue.

Several options are on the table, but financial constraints limit flexibility. One of the leading proposals involves providing income-based assistance, which would extend support beyond targeted aid for vulnerable sectors and individuals in poor health.

This could also include stay-at-home mothers or women with dependents, depending on household income.

According to a statement from the Social Security Ministry on June 25, about 3,000 people aged 60-61 will continue to receive a monthly pension of Rs 15,000 until age 65.

Around 15,000 others in this age group might benefit from specific measures, especially those with disabilities or widows.

Currently, the pension system faces significant costs. As of June 2025, 272,033 people receive pensions, costing Rs 55.3 billion for the 2024-25 fiscal year—more than double the Rs 20 billion spent in 2019-20, a 150% increase over five years.

Data shows that about 27% of those aged 60-65 are employed, with employment rates dropping from 39.6% for ages 60-61 to 15.9% for ages 64-65. Nearly 40% of Basic Retirement Pension (BRP) recipients are working, mainly in the private sector.

The upcoming joint meeting under Prime Minister Ramgoolam’s chairmanship will address delicate issues such as whether to focus aid on specific groups or provide universal support amid rising public expenditure debates.

The decisions made this week could reshape Mauritius’s social protection system for years to come.

Additionally, a panel of experts—including actuaries and economists—will later develop a new version of the National Pensions Fund (NPF 2.0). This aims to replace the General Social Contribution introduced by the previous government.

The pension reform, announced a month ago, has sparked strong reactions from the public and unions. Consequently, two committees were formed on June 16.

The first, led by Prime Minister Ramgoolam, focuses on support for those aged 60-65 working in tough sectors and considers income-based aid for stay-at-home mothers. The second, headed by Minister Ashok Subron, examines measures for people unable to work due to health issues.

Source: Defi Media