[Parliament] Purchasing Power: Rs 635 for Employees and Adjusted Pensions

The last parliamentary session of the year, held on Friday, December 12, featured significant announcements from the Prime Minister. He addressed sensitive issues including wage compensation and the adjustment of basic pensions, as well as road safety reform, and the initiation of an independent inquiry into the death of an inmate at Melrose prison. The Prime Minister concluded the assembly's work with a summary message and end-of-year wishes.

On December 12, the Prime Minister made a statement to the National Assembly regarding salary compensation for 2026 amidst a challenging economic and budgetary context. He noted that the inflation rate for 2025 is projected at 3.7%, based on data provided by Statistics Mauritius during the tripartite technical committee meeting on November 26.

The Tripartite Committee on Salary Compensation reconvened under the Prime Minister’s leadership to review proposals from worker and employer representatives. Unions had demanded monthly compensation ranging from Rs 855 to Rs 1,792 for all employees, while Business Mauritius suggested a 3.7% increase limited to employees earning up to Rs 18,000 per month.

Following consultations, the government decided to provide a flat monthly salary compensation of Rs 635 to all employees earning a basic salary of up to Rs 50,000. This amount corresponds to 3.7% of the national minimum wage set at Rs 17,110 and continues the policy adopted last year regarding salary compensation and the payment of a 14th month’s salary.

Approximately 409,400 employees will benefit from this measure, including 89,100 in the public sector and 320,300 in the private sector, accounting for nearly 88% of the workforce. The annual cost of this compensation is estimated at Rs 3.38 billion, with Rs 740 million allocated for the public sector and Rs 2.64 billion for the private sector.

Additionally, the Prime Minister announced a 3.7% increase in basic pensions effective January 1, 2026. This increase will apply to retirement, widow, disability, and orphan pensions, as well as to Income Support recipients aged 60 and above who are not eligible for the basic retirement pension. Specifically, this adjustment represents Rs 550 for a basic pension of Rs 15,000 and Rs 370 for an allowance of Rs 10,000. These measures will impact over 325,000 individuals and incur an annual cost of Rs 2.4 billion.

Despite a challenging economic landscape, the Prime Minister emphasized that these decisions reflect a policy of compassion and inclusivity. He also announced that a statement on the 2026 Pay Research Bureau report will be delivered to the National Assembly next week.