Govt to scrap monthly retiree allowance for pay hike sectors

The Pay Commission has decided to discontinue the monthly allowance given to civil service employees that in sectors where the government hikes salaries who go for early retirement.

The early retirement age in Maldives is 55 years. Employees who retire after attaining the age of 55 years are given a certain amount of basic pay every month along with a one-off retirement payment.

With the revision in salaries of education workers in May 2022, it has now been decided to scrap the monthly allowance included in the early retirement package.

Civil Service Commission (CSC) President Mohamed Nasih told Atoll Times on Tuesday that the change will be applicable only to employees in sectors where the government has hiked salaries. While salaries of education sector workers were hiked last year and those working in universities were hiked last month, employees from sectors where salaries have not been revised will still get the monthly retirement allowance, he said.

With the change in retirement package:

Nasih, however, said those who have already applied for early retirement have been allowed to choose the old retirement package till November. However, even if the old package is chosen, the monthly retirement amount will be paid on the basis of the previous salary, he said. 

The Pay Commission did not immediately respond to a request for comment.

Monthly retirement payments have been paid at a certain rate from the basic salary depending on the length of service.