31/07/2026
I am intervening tonight in my capacity of Minister of Social Security, Member of the National Assembly representing Constituency No. 4, Spokesperson of my party, but also as a long-standing trade unionist and social movement activist for some 40 years.
I know that many people in the country are awaiting the content of my speech tonight. I thank them for this attention.
Madam Speaker, I would humbly request your indulgence to allow me to contextualize the very Finance Bill itself, especially on pension and social matters before the House tonight.
This is a rare Finance Bill, when not all measures announced or mentioned in the budget speech are translated into necessary immediate enactments.
So my speech will deal to both kind of measures, those found and not found in the bill, but which were mentioned in the budget.
To situate the present Finance Bill on pension, that the sections amending the National Pensions Act falling under my ministry, we cannot not go back to the last budget 2025–2026.
At the time, many people from outside and inside this House raised serious concerns on the proposed pension reforms when the last budget raised the basic retirement pension entitlement age from 60 to 65 years old.
This included my party, Rezistans ek Alternativ. In a letter addressed to our partners in the government, we said that such fundamental change should have been conducted in consultation with the people and their organizations.
Out of the concerns of the people at the time, the parties in the government, of the then-constituted government, initiated interim measures to provide an Income Support to all pensioners earning less than 10,000 rupees individually or, if a couple, earning up to 20,000 rupees.
In addition, all persons who were receiving their Basic Invalid Pension and Basic Widow's Pension attending 60 years would continue to receive their pensions up to the new pension age, that is 65 years old.
In parallel, a Committee of Experts on Pensions, was set up after the budget to look into the whole pension system of Mauritius. The present Finance Bill contains some of the proposals by the said committee.
For this budget, in June 2026, when the present budget was in elaboration and finally presented, many people inside and outside the government raised some concerns.
Subsequently, many events occurred, and decisions were taken by government and especially the Prime Minister and Minister of Finance.
Madam Speaker, the present Finance Bill on Pension Reform - I will focus on this issue as it is a major one and is the product of budget-related events and decisions.
Madam Speaker, tonight, I stand up in this house in the context of this Finance Bill, which represents the positively mutated version of the pension reform.
Madam Speaker, I would never have stood up tonight if this bill did not include the principle of payment of an optional universal pension to all citizens as from the age of 60, 60 years.
I stand up because the government has taken into consideration the plight of all of our elder citizens, workers, women, people living in precarious conditions, self-employed, and people in small production.
Madam Speaker, I would not have stood up tonight if the Finance Bill included the means-tested that would have applied cuts to existing pensioners' pensions.
It is now public domain, that my party was contemplating of leaving the government in this context.
Again, let me thank all the members of the National Assembly, Ministers, and especially the Prime Minister and Minister of Finance for his maturity and the people of Mauritius. Together, we co-produce this important change, this critical mutation of the pension reform.
Madam Speaker, I would not have stood up tonight if the Report and documents related to the Committee of Expert on Pensions, was not rendered public.
A democratically respected society deserves that citizens, workers, women, pensioners, and the youth be made aware of what are being proposed by a committee set up on their present and future living realities.
Madam Speaker, I would not have stood up tonight had the National Pension Fund 2.0 be rushed into and included in this Finance Bill.
Our government decided that this process follow its due course to enable more reflections and consultations.
I would also like here to mention the answer of the Prime Minister in his answer to a PQ, where he stressed the need for more consultation and equally important his guarantee that no employee will be worse off with the new system of the National Pension Provident Fund.
This section is not per se in the Finance Bill, but will be subject of consultations and discussion in parallel.
Madam Speaker, I would never have stood up if there was not any legal clarification and guarantee that as from January next year, that pensions would be annually increased taking into considerations the cost of living of the previous year for all old age pensioners, whether under the existing system in transition or the new State Age Pension, SAP, as from January 2027.
Madam Speaker, I must now convey that I am convinced that the mutated pension reform forming part of this Finance Bill is now laying the foundation of a new progressive pension system for present and future generations.
There are several major amendments in the National Pension Act.
The first amendment relates to Section 3.
And this amendment is to ensure the continuity of payments of the existing BRP to existing pensioners and payment of pension to new pensioners under the new State Age Pension, the SAP.
The second major amendment relates to the inclusion of a new section, Section 3A, entitled State Age Pension, and it is being inserted in Section 3.
This amendment is to make provision for transitions period;
for persons attaining age of 60 on or after the 1st January 2026 to be eligible to the State Age Pension.
for person attaining 60 on or after the 1st January 2026, but before 31st December 2026, to be eligible to receive the State Age Pension as from 1st January 2027,
for person attaining 60 on and or after 1st January 2027, but before 31st August 2029, to be able to receive the new SAP.
There is a new section, of what I've just described is in the new section 3A.
The other section, the third major amendment, is 3B. And this amendment is to make provision for State Age Pensions, for pensions for persons attaining age of 60 on or after the 1st December 2029.
The fourth major amendment is in 3C, is to increase the State Age Pension.
I wish to clarify two important issues here.
First, that the increases already granted in the law to pensioners at the age of 65, 75, 90, and 100 years centenarians are all guaranteed under the new system, the new SAP.
Second, and this is for the first time in the history of the country, pensioners' pension will be readjusted every January, taking into considerations the cost of living, of course, cost of living is measured with the CPI.
I've heard some of the opposition people saying that it should not have been cost of living. This is semantic. And so pension it will be adjusted annually.
Now, the principle of the increase is legally enshrined in the law. Every January, and this is not very different from workers' compensation.
I've been in the trade union movement, some of us here have been in the trade union movement too. Every January, the compensation to salaries are given to workers. There is not even a law for negotiating and guaranteeing salary increase to the workers due to the increase in the cost of living of the previous year.
It's the first time, for pensioners that such a disposition will be included in the law of Mauritius.
I've also heard from the opposition who commented on this disposition. I must stress that it is not the fact of the increase which is subject of the “may be”. It is only the actual rate to be prescribed which is the subject of the “may”.
Let me reply to my colleague Baboolall, Honorable member, who have stated that we haven't circulated figures. We have, we did have circulated many figures in our press conference. But let me give you an an idea of the new system, what what it will give.
For example, for someone aged 55 today, that is in 2026, I'm simplifying it.
And if this person opts for a pension at 60, this person will receive Rs 13,764 depending on the months.
If this person op of a pension at the age of 63, he will be entitled to Rs 19,1488, monthly pension.
And if this person opts for a pension at 65, he will be entitled to Rs 23,35200, monthly pension.
And you can go on like this. Let me go to the last one.
If someone has 25 years today and opts for a pension at 60 years, okay?
This person will earn Rs 38,661 if he opts for pension at 60 years old and Rs 65,546, if he opts for a pension at 65 years old.
All this, is assuming that the inflation rate increased by 3.5. And the 3.5% is not a magical figure. It's a figure that is proposed by the Bank of Mauritius and the IMF itself.
Now, let me come to the other major amendment to the National Pension Act, that is the Steering Committee on Pension Reforms.
With this amendment, the government want to go to further, have reflections, inputs, and consultations on the issue of an Independent Pension Regulatory Authority and the Central Pensions Administration Bureau.
And this is very important, because one thing is very important.
We have decided not to rush into the setting up of any institutions within the Finance Bill.
So, the government have created space for these, for this Steering Committee to give a report within three months for the Central Pensions Administration Bureau and six months for the Independent Pension Regulatory Authority.
And Madam Speaker, coming to the NPPF or the NPF 2.0, I've been listening to some of the opposition members.
Let me say that the NPPF or NPPF 2.0 have deliberately not been included in the Bill.
It's not that there is a silence. It has deliberately not been included in the Finance Bill because, precisely, we want consultations, we want all the parties to bring in their inputs, bring in their concerns, bring in their criticisms.
I myself have some issues with some of the proposals, and it is the right for people to have space for discussion.
So, it hasn't been included and I refer to all the Honorable members of the Opposition to the PQ B964 where the Prime Minister referred in his reply to this question.
He said that, “I wish to emphasize that the reform of pillar two and three, that is the NPFP 2.0 and the institution on the pension system, as I mentioned, the contributory pension scheme and the voluntary private scheme are not yet finalized. Their implementation, will require a dedicated legislation, extensive consultation with stakeholders.
This is a promise I made to the union movement, and we have kept this promise.
Madam Speaker, I think I need as an MNA, a minister, and a trade unionist, to make an important point. There is one element that has not been included in this debate in the whole country. At least I have never seen it.
First, since 2008 up to 2018, the retirement age have been brought to 65.
This is a reality.
Nobody challenged it.
Neither the Opposition parties nor the trade union movement, in which I was part of.
The only thing that we did at the time, I remember with my friend, who is not here now, Rashid Imrit:
We organized so that workers get a reduced contributory pension of the NPS, at the age of 60.
We struggle to get the Optional Retirement age to be 60. It's still in the law right now.
What I'm saying, if you look at the civil servant, as from 2018, civil servants were required to work or required to work for a certain amount of months.
It was 33.5 years and then became 38.5 years, in 2018.
What I'm trying to say, is that retirement age is already 65.
And every entitlement that workers get, is a reduced entitlement when they opt for 60 years.
And I think this is very, very important in the debate.
This is what what is happening now, not last year. We are bringing the same principle to the old-age pension's entitlement.
That is, the old-age pension is aligning to 65 retirement age, and we are giving the option of any citizen to opt for a readjusted, reduced pension at the age of 60.
If you look at a private sector worker, the private sector worker now may opt to a PRGF, that is 15 days per years of service.
If the worker works up to 65, he will get the PRGF, of 5 years more, because he's working 5 years more, from 60 to 65.
If the worker opts to retire at 60, he will have five years less.
So this is, I would say, this was the rational that was elaborated when the retirement age changed in 2008-2018.
And not last year, but now this is what the government is doing.
So, I been thinking of the rational. I don't think the rational is different from what has been adopted by consensus in this country from 2008 to 2018, be it by all the political parties in this assembly and the trade union in which I was part of.
Madam Speaker, this finance bill and the mutation of the pension reform is now laying the foundation of a three tier pension system to protect the interests of existing pensioners, new comers pensioners, and new generations.
The mutated reform was born, I must say, out of the people challenge, dissenting trade union movement challenge and dissent, from senior citizens, from the youth, from representative of the people in every constituency of this country.
This mutated reform is itself paving the way for the pension system imagined by our independence struggle pioneers and the militants trade unionism of the early 70s, the General Workers Federation.
A combined system where state solidarity is granted to all citizens reaching the retirement age, reaching retirement, plus a contributory system where contributions are made by employers by a higher rate and employees at a lower rate.
This is why the NPF was born in 1976 and enter into force in 1978.
And this is why this is why economic lobbies didn't want the NPF to succeed. And they finally succeeded in 2020 when the previous regime destroyed the NPF.
Madam Speaker, let us imagine the system that is emerging.
Someone 25 years old today, earning 30,000 rupees is estimated to get Rs 66,000 rupees when he reach 65. And this person will get a monthly pension of Rs 55,000 rupees, if we take all the money of the CSG going to the budget and transfer it to the own account of the employee.
And these young guys, who would turn 65, will earn a significant Lump Sum.
Now, let me give another important contribution to the debate.
But let me then reply to the Opposition, official opposition. OK?
They said that they will return ‘pension kouma avan”
Okay.
Yeah, return.
They are saying that we are doing is a treason.
One question I have to them.
If you are returning back where we were, would you continue to request 14 billion rupees contribution on behalf the workers of the country annually?
Now the fund directed to the CSG is Rs 14 billion rupees.
Will you continue to take this money from the people? Please answer to this question?
Second, if you are returning back, will you continue the destruction of the National Pension Fund? You'll destroyed it, the NPF.
Will they continue to take a 14 billion rupees from the workers of this country to "retourn kouma avan"?
So, these are the questions.
And and if we want to put the question, we can continue and ask, will they return the retirement age to 60 then? Yes, if they are going in this logic, will they return the retirement age to 60?
Why not?
They've been in power in between 2024 and at least to 2018 when the cycle was completed. They maintained the retirement age at 65!
Madam Speaker, I stand up to say with conviction that the new pension system in evolution, will be one of the most progressive and socially advanced since independence.
I am a man of conviction. When I'm convinced of something, that something is progressive, I will stand and defend it tooth and nail.
The government, the Alliance, Rezistans and Alternativ have created a historical space.
It is up to the people who are struggling, many with passion, to bring reason and to take our pension system ahead.
What will happen in the future depends on what we do with our hearts, but with reasoning.
Many of them are realizing that the dangers of official opposition's and their acolyte mantra's and are distancing themselves.
The Opposition are saying that it is a sad day for the welfare state.
No.
We are consolidating the Welfare State, with final outcome of this mutated pension.
And, I don't see how when we are providing domiciliary visit to the old-age pension 85, this is a regression of the welfare state.
And I will add that we are a government that have decided to set up a Constitutional Review Commission to insert economic and social rights within our constitution.
Article 9 of this economic and social rights recognizes the right of everyone to social security, including social insurance.
You mean from the covenant?
The Covenant.
The Economic and Social UN economic and social Covenant.
So, I conclude by addressing to all the people, workers, pensioner, youth and women's.
Some people are saying that we don't need, we should not vote for the Finance Bill. Madam Speaker, I've been baffling with this reasoning for some days.
If we do not vote the Finance Bill tonight, technically and legally, it would mean that the raising of the pension age to 65 would stay as it WAS last year. And that we are not improving it.
This would mean denying the option of persons to take a pension at the age of 60 years.
This would be denying the possibility of a mandatory social insurance, the NPF 2.0 for the benefit of the working people of the country!
This would mean denying the statutory annual increase of pensioners due to the cost of living.
So Madam Speaker, I don't see the reasoning of not voting for the Finance Bill and its Section 12 on the National Pensions Act.
To those who are calling for a division of vote, rest assured I will vote this Finance Bill for all reasons stated in my speech.
No need for a division of vote for me.
Thank you, Madam Speaker.