Old age pension hiked to MVR 7,000
The President first announced that he would change the allowance for the elderly at a rally in Addu last June, but he has not specified when.
By
Ahmed Sadhoof Moosa
President Ibrahim Mohamed Solih announced on Thursday evening that he has increased the basic pension for people over the age of 65 from MVR 5,000 to MVR 7,000.
The President made the announcement while addressing a rally at the MDP's Huvadhoo camp on Maaveyo Magu in Male, campaigning for the second round of the presidential election to be held on September 30.
The President said the public had expressed concern during the campaign that the allowance for people over the age of 65, which was started by the former President Mohamed Nasheed’s government, had been maintained at MVR 5,000 over the course of many years and economic recessions.
Therefore, to solve the problem, people over the age of 65 will receive MVR 7,000, the President said.
However, the President did not say when the increase would be implemented.
The President first announced that he would change the allowance for the elderly at a rally in Addu last June.
The basic pension is funded from the state budget.
According to the Pension Office, the basic pension:
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In 2021, a total of MVR 1.09 billion has been paid
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Last year, the figure increased to MVR 1.16 billion
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By the end of 2021, the number of basic pensioners was 19,283
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At the end of last year, that number rose to 20,593
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For 20,593 people, the pension at MVR 7,000 per person will cost MVR 144 million per month and MVR 1.7 billion per year. That is MVR 540 million more than the current figure.
