Mauritius to Launch New Support for Households Earning Rs 17,000 to 20,000

The Mauritian government is set to fast-track a major overhaul of its social welfare system, introducing direct state support for households earning between MUR 17,000 and MUR 20,000 per month.

Social Security Minister Ashok Subron confirmed that the reform aims to bridge the gap between absolute poverty and the struggling “intermediate” income bracket.

Under the proposed multi-tier system, the government will extend “dedicated support” to those previously ineligible for aid, providing essential resources such as school materials and housing renovations through the National Empowerment Foundation.

Expanding the Scope of Aid

The shift follows a cabinet decision to begin formal discussions with the Ministry of Finance.

While the income thresholds for the new category are currently being finalised, the ministry is also looking to widen the existing Social Register of Mauritius (SRM) framework.

Proposed enhancements to the SRM include direct subsidies for:

• Daily staples, specifically bread.
• Utility bills, including water and wastewater charges.
• Domestic cooking gas.

A New Definition of Poverty

Central to this reform is the introduction of a Multidimensional Poverty Index (MPI), developed over the last six months in collaboration with Statistics Mauritius and the University of Oxford.

Minister Subron argued that the current poverty line—defined solely by monetary income—is “unacceptable” and fails to reflect modern hardships.

At present, the official threshold stands at MUR 3,575 for a single adult and MUR 14,650 for a family of four.

“If a person does not have a house, that is a deprivation,” Subron stated, noting that the new index will weigh factors such as education levels and basic living conditions alongside cash flow.

Implementation and Funding

Although the timing coincides with recent price hikes, the Minister clarified that these reforms have been in development since the 2025 Budget.

Statistics Mauritius is expected to officialise the new index shortly, allowing for a more nuanced measurement of national poverty.

Regarding the wider economy, the government has ruled out an immediate revision of the minimum wage, maintaining that such a move remains a state prerogative.

To fund these expanded protections, the Minister pointed to the Crisis Solidarity Fund, calling on the affluent to contribute to the national effort to protect the most vulnerable citizens.

Fact Box: The New Proposed Tiers

Source: Defi Media