Maldives Pension Retirement Scheme Fund receives over USD 66.6 million in 2017, which is an increase of 8.4% compared to the deposits of 2016. The fund received about USD 60.6 million in 2016, according to statistics of Maldives Pension Administration.
In this regard, private sector entities deposited over USD 39 million, which according to statistics is the most number of deposits to the fund in 2017. The statistics also showed over USD 26.9 million was deposited to the fund from public sector during the year.
Under the Pension Act, it is mandatory for the employers to enroll their employees in the Maldives Retirement Pension Scheme and make monthly contributions on behalf of the employees. The primary objective of the fund is to ensure individuals save during employment to cater for their livelihood while in retirement and ultimately create financial independence. The fund is a defined contributory pension scheme funded from contributions from both employees and employers.
Presently, the Pension Act mandates a contribution of 14% of the pensionable wage, comprising of a minimum of 7% each from the employee and the employer.