President Dr Mohamed Muizzu has ratified the 6th Amendment to the Maldives Pension Act, introducing major changes to eligibility for the basic pension scheme and expanding the permitted use of pension savings.

The amendment, ratified on Thursday, states that individuals earning above the income threshold set under the basic pension scheme will no longer qualify to receive the pension. The Maldives Pension Administration Office board, in consultation with the Ministry of Finance, will determine the criteria and procedures for assessing eligibility based on income.

Under the revised law, individuals receiving the basic pension will also become ineligible if they are elected to a position under the Constitution or employed at a State institution or Government-owned company.

The amendment additionally introduces provisions allowing retirement pension savings to be used as collateral for housing construction, home purchase and home renovation loans issued by banks, financing companies and other financial institutions. Regulations governing the process are to be formulated separately.

The revised law also permits pension savings to be withdrawn in cases of terminal illness and allows pension funds to be used to reserve Hajj slots in advance.

Terminal illness is defined under the amendment as a condition certified by a specialist doctor in which a patient is unlikely to survive beyond 12 months despite treatment. Individuals diagnosed under such conditions will be allowed to withdraw all funds held in their retirement savings account.

Changes were also made to the composition of the Pension Office board. Under the new structure, the board will consist of nine members, including a chairperson, senior civil servants representing the ministries responsible for finance, social security and employment, as well as five representatives from the private sector.

The bill was passed during the 19th sitting of the first session of the People’s Majlis for 2026 held on 14 May.

The 6th Amendment to the Maldives Pension Act has now come into force following its ratification and publication in the Government Gazette.