President Dr. Mohamed Muizzu has instructed the Finance Ministry to change its decision to cut the monthly allowance for new retirees from January 2025.
The government has not commented on the matter, but Adhadhu can confirm that the President instructed the withdrawal of a circular sent to government agencies.
It is unclear why the President ordered to change the Finance Ministry's decision.
The decision to cancel the monthly allowances for new retirees was part of the government's policy of reducing expenditure.
International financial institutions have repeatedly advised the government to take measures in order to cut costs.
The retirement pension scheme, which was introduced in 2009, is operated by 13 government agencies and is expected to cost MVR 272 million next year. The scheme is expected to cost a total of MVR 266 million this year.
The state's expenditure on pensions is increasing year by year. With cost-cutting measures to be introduced next year, the government has already decided to not provide the MVR 5000 monthly allowance to wealthy senior citizens.
