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President revokes directive to discontinue non-contributory retirement benefits

President Dr. Mohamed Muizzu has revoked the directive to discontinue non-contributory retirement benefits, which was set to take effect on January 1, as part of the government's economic reform agenda.

The decision, made during the Cabinet meeting on December 1, 2024, follows a paper presented by the President. In response to concerns raised by various sectors regarding the changes to retirement pensions, the President has decided to withdraw the Ministry of Finance's letter to relevant institutions, acknowledging the public's feedback on the reduction of such retirement allowances at this time.

It has also been determined that the retirement pension process for those transitioning to the new pay structure will remain unchanged until all individuals have fully transitioned into the new system.