Retirement Pension Reform: Eligibility for Monthly Rs10 000 Income Support

A new measure called Income Support has been introduced for people aged 60 to 65 who are not eligible for the Basic Retirement Pension. This was announced by Prime Minister Dr. Navin Ramgoolam in Parliament on Friday, July 4.

What is Income Support?
Eligible individuals will receive Rs 10,000 each month, with a 13th-month bonus included. Payments will be made monthly.

Who Can Receive Income Support?
The Council of Ministers approved recommendations from two interministerial committees that studied support options.

Eligible individuals include:

• Those turning 60 starting September 1, 2025, under certain conditions.
• For single people: monthly income must not exceed Rs 10,000. This income includes salaries, earnings from business or professional activities, and contributory pensions.
• It excludes the lump sum received at retirement and the Invalidity Allowance from the Ministry of Social Integration, Social Security, and National Solidarity.
• For married couples: household monthly income must not exceed Rs 20,000. This includes salaries of both spouses, earnings from business or professional activities, and contributory pensions.
• It excludes retirement lump sums, Invalidity Allowance, Basic Invalidity Pension (BIP), Income Support, or Basic Retirement Pension received by the spouse.
• Women at home, retirees, employees, or entrepreneurs who meet these criteria.

People already receiving the Basic Invalidity Pension (BIP), Basic Widow’s Pension (BWP), or Invalidity Allowance will continue to get Rs 15,000 per month and are not affected by this new Income Support measure.

Duration of Support

• Those turning 60 between September 1, 2025, and August 31, 2026, will receive support for 1 year.
• Those turning 60 from September 1, 2026, to August 31, 2027, for 2 years.
• From September 1, 2027, to August 31, 2028, for 3 years.
• From September 1, 2028, to August 31, 2029, for 4 years.
• From September 1, 2029, to August 31, 2030, for 5 years.
• From September 1, 2030, to August 31, 2031, also for 5 years.

National Pensions Fund: New Model to Replace the CSG

Alongside pension reforms, the National Pensions Fund will be overhauled to replace the current Contribution Sociale Généralisée (CSG), introduced in September 2020. This decision was made during the Cabinet meeting on July 4.

Additionally, the Ministry of Social Integration, Social Security, and National Solidarity will review the entire invalidity pension system and recommend reforms.

A commission of experts will be formed to examine the three pillars of the pension system. Its terms of reference are being prepared, and the commission’s president and members will be appointed soon.

Source: Defi Media / Defi Media2