The pension system in Mauritius is undergoing its biggest change in decades. From 1 January 2027, the Basic Retirement Pension (BRP) disappears. In its place comes the State Age Pension (SAP), a means-tested benefit designed to direct support to those who need it most.
This is not a minor adjustment. It changes who qualifies, how much they receive, and when they can start collecting. If you are within 10 years of retirement, or already retired, you need to understand what is coming.
The end of the BRP
The BRP has been a universal benefit. Every citizen over 60 received the same amount, regardless of income or assets. That changes on 31 December 2026. After that date, the BRP no longer exists.
The Government estimates that 263,200 people currently receive the BRP. Under the new system, over 90% will still receive some form of pension. More than 75% will qualify for the full amount. But for the first time, higher-income retirees will receive nothing.
How the SAP works
The SAP is means-tested. Your monthly income determines how much you get.
| Monthly income | What you receive | |---|---| | Below Rs 14,000 | Full SAP | | Rs 14,000 to Rs 50,000 | Reduced SAP (tapered) | | Above Rs 50,000 | No SAP |
The Rs 14,000 threshold is based on the World Bank's relative poverty line (50% of median income). The Government has set a minimum de minimis SAP of Rs 1,000 for anyone whose income falls below the upper ceiling.
What counts as income?
The MRA has not published a full list of what counts as income for SAP purposes. Based on the Budget speech and Finance Bill, the following are likely included:
- Employment income
- Pension income from other sources
- Investment income
- Rental income
The Government has indicated that the NPPF will publish detailed guidelines before the SAP takes effect.
When can you start collecting?
Under the BRP, you started receiving your pension at 60. Under the SAP, you have flexibility. You can elect to receive the SAP from any month between ages 60 and 70. Once you choose, the decision is irrevocable.
| Choice | Effect | |---|---| | Start before 65 | Reduced by 0.5% per month (6% per year) | | Start at 65 | Standard amount | | Start after 65 | Increased by 0.75% per month (9% per year), up to age 70 |
This gives you a genuine choice. If you are healthy, have other income, and want to maximise your pension, waiting until 65 or later makes sense. If you need the money now, you can start early and accept the reduction.
The NPPF: what changes for employers and employees
The National Pension Fund (NPF) is being replaced by the National Pension and Provident Fund (NPPF) from 1 July 2027. This is a structural change, not just a rename.
Key changes:
- Contribution rates: Employees earning up to Rs 50,000 contribute 1.5%. Employers contribute 7.5%.
- Postponement: The NPPF introduction has been postponed from its original date to allow for further consultation with unions.
- Scope: The NPPF is expected to cover more workers than the current NPF.
Employers need to prepare for the transition. Payroll systems will need updating. Contribution rates will change. The timeline is tight.
What this means for retirement planning
If you are in your 40s or 50s, the SAP changes how you should think about retirement. The days of relying solely on the state pension are ending. The system is now designed to supplement, not replace, personal savings.
Practical steps:
- Calculate your expected retirement income. Include employment income, any pensions, investments, and rental income.
- Check whether you will qualify for the full SAP. If your monthly income will be above Rs 14,000, your pension will be reduced.
- Consider voluntary contributions. The NPPF may offer options for additional contributions. Watch for announcements.
- Talk to a financial adviser. The interaction between the SAP, NPPF, and personal savings is complex. Professional advice is worth the cost.
Frequently asked questions
Will I lose my pension if I earn above Rs 50,000? Yes. The SAP phases out completely at Rs 50,000 monthly income. If your total income exceeds this, you will not receive the SAP.
Can I still work and receive the SAP? Yes, but your employment income counts toward the means test. If your total income exceeds Rs 14,000, your SAP will be reduced.
What happens to people who are already retired? The BRP ends on 31 December 2026. From 1 January 2027, all pensioners will be assessed under the SAP rules. Most will continue receiving similar amounts. Some higher-income retirees will see their payments reduced or eliminated.
When will the NPPF start? The NPPF is now scheduled to begin on 1 July 2027, delayed from the original date to allow for union consultation.
This article is for general information only. For advice on your retirement planning, consult a qualified financial adviser in Mauritius.