Govt. spends MVR 1.3 bil on allowances for elderly in 2024, a 7 percent increase

The government has spent MVR 1.3 billion on allowances for elderly citizens aged 65 years and above last year, which is a 7 percent increase.

The Maldives Bureau of Statistics has published statistics based on data collected from Maldives Pension Administration Office (MPAO). The statistics showed that the government spent 7 percent more on allowances to elderly citizens last year than in 2023. In 2023, the government spent MVR 1.23 billion on allowances and MVR 1.32 billion in 2024.

According to the Ministry of Finance, that issued the finalized statistics, the government spent the most in December last year, during which it had spent MVR 112 million on basic pension.

The basic pension is disbursed to all citizens aged 65 years and above on a monthly basis with the aim of providing financial support for elderly citizens who are no longer employed or for retired citizens who did not receive sufficient retirement pension.

Along with the MPAO-issued basic pension, due to the provision in the Civil Service Act and the practice of individual institutions creating their own pension regulations and granting pensions, created a situation of ‘double pension’ that led to an increased financial burden on the government.

In a report, the Auditor General highlighted the double pension was not financially sustainable for the government, which was echoed by various global financial institutions which have recommended to rescind double pension.

The current administration earlier in December last year announced its decision to revoke double pension in 2025 but later reneged on this decision.

The state has attracted criticism owing to lack of stronger financial reforms while the public debt has been increasing.