FAQ

Pension Unit

Introduction

The existing Pensions System of the Government of Maldives (GoM) has been in use for several decades. Under this system, any Government employee who completes twenty consecutive years of service in a permanent post is entitled by law, to receive a pension. The pensionable amount is 50% of the salary earned by the employee at the time of completion of twenty years’ service. The pension entitlement continues for the duration of the employee’s life.

If the Government decides to retain the services of a pensioned employee, he/she may be reinstated in his/her current post or a different Government post. If a pensioned employee continues to serve a subsequent twenty consecutive years of service, he/she will be entitled to a second pension, within the same rules applicable to the first pension. This “double pension” entitlement consists of 50% of the salary earned at each twenty year milestone of an employee’s service to the Government.

Very few employees have received a third pension. Currently, an employee could continue to work towards a third pension if he/she is retained in Government service after forty years’ service.

The Pensions Unit manages the following services and responsibilities.

  • Distribution of the Government special allowance to citizens who memorise the Holy Qur’an (or achieve the status of “Hafiz”).
  • Distribution of the Government special allowance to the blind.
  • Distribution of Government pensions.
  • Distribution of special allowances or “Khaassa Inaayai” to eligible parties, as advised and instructed by the President’s Office.
  • Payment of the final one to three months’ salary to employees given notice to resign from Government service, as directed by the President’s Office.

Provident Fund Unit

Introduction

The Provident Fund Unit (PFU) of the MoFT manages the Government employees’ Provident Fund which was established on 01 March 1988. The Fund was set up to encourage savings among Government employees and to secure their financial status following retirement. The Provident Fund also works as a source of financial security during the course of their employment.

At present, participation in the Provident Fund is voluntary for all Government employees and employees of other Government enterprises. The current contribution rate is 5% of the basic salary by both the employee and the employer.

The PFU’s main responsibility is the collection and administration of the Provident Fund. However, the following services also come under the remit of the PFU.

Withdrawal from the Provident Fund

Members can withdraw from the Provident Fund savings during the course of their employment for the following four categories

  • Healthcare
  • Education
  • Housing
  • Hajj Pilgrimage

Entitlements from the Provident Fund

Withdrawal during the course of employment

Less than 05 years 75% of the employee’s contribution and 75% of the accumulated profit.
Between 05 years and 10 years 100% of the employee’s contribution and accumulated profit and 25% from the employer’s contribution.
10 years and above 100% of the employee’s contribution and accumulated profit and 50% of the employer’s contribution and accumulated profit.

Withdrawal on retirement

Less than 05 years 100% of the employee’s contribution and accumulated profit.
Between 05 years and 10 years 100% of the employee’s contribution and accumulated profit and 50% of the employer’s contribution and accumulated profit.
10 years and above 100% of the employee’s contribution and accumulated profit and 100% of the employer’s contribution and accumulated profit.