President Dr Mohamed Muizzu has reversed the directive to discontinue non-contributory retirement benefits from January 1, 2025, a measure initially outlined in the Government’s economic reform agenda.

The decision was made during a Cabinet meeting held on December 1, 2024, following a proposal presented by the President.

The reversal comes in response to widespread concerns raised by various sectors about the impact of discontinuing non-contributory retirement pensions.

Recognising public sentiment, the President decided to revoke a prior directive issued by the Ministry of Finance to relevant institutions.

The current retirement pension process will remain unchanged for those transitioning to the new pay structure. This decision ensures that individuals who have not yet shifted to the new structure will continue receiving their benefits under the existing system until the transition is complete.