PRB 2026 Report - Retirement, Leave, Pension... Changes for Civil Servants
The Pay Research Bureau (PRB) released its 2026 report on Friday, December 19, following consultations with trade unions, relevant ministries, and the Ministry of Finance. This reference document redefines the terms of service in the public sector, emphasizing a continuity approach while implementing targeted adjustments.
Retirement: Balancing Benefits and Flexibility
The PRB emphasizes that pensions are a primary source of income for retirees, allowing them to secure their lives after retirement. Significant reforms have occurred since the 2008 report, including extending the mandatory retirement age to 65 and introducing a defined contribution scheme for new entrants starting January 1, 2013.
Flexible Retirement Age
The normal retirement age for civil servants remains at 65, but employees can retire at 60, or even 55, under certain conditions with the approval of relevant committees. Judges have a normal retirement age of 67.
Civil servants choosing to work past 60 may be required to undergo annual medical examinations to ensure their fitness for duty, particularly when physical condition is vital for their roles. Specific provisions remain for disciplined forces and correctional centers.
Elimination of Pension Reduction for Early Retirement
Trade unions and the Ministry of Public Service requested the elimination of the 2.5% annual pension reduction for early retirees. After discussions with the Ministry of Finance, the PRB agreed to this under certain conditions, proposing that the reduction should not apply to officers within five years of their mandatory retirement age.
Contribution Rates Unchanged
The report maintains the existing contribution rates from the 2008 PRB report, with all employees contributing 6% of their pensionable salary, while interns and apprentices contribute 3%. Employees leaving public service without pension rights will receive a full refund of their contributions plus 4% annual compound interest after contributing for at least a year.
Specific Provisions Retained
Several provisions are preserved for employees temporarily holding higher positions at retirement. Pension benefits will be calculated based on the annual pensionable salary of the higher position, provided it does not require additional qualifications.
AI: A Tool, Not an End Goal
The report dedicates a chapter to preparing the public service for digitization and artificial intelligence (AI), with Mauritius aiming to become an "intelligent, inclusive, and future-ready nation." The PRB reiterates the launch of the "Blueprint for Mauritius: A Bridge to the Future - Digital Transformation 2025-2029," which outlines a strategic roadmap focused on four pillars and five levers.
Budgetary Pressures on the Passage Benefit Scheme
Originally designed for expatriates during colonial times, the "Passage Benefit Scheme" is now available to all permanent and pensionable employees, but shows signs of strain. The Ministry of Finance reported a significant rise in expenditures related to this scheme, indicating that 97% of the allocated amount for the 2025-2026 financial year has already been disbursed.
Leave: A Maintained Framework with Adjustments
The report outlines various leave provisions, emphasizing that paid leave is highly valued by employees. It recommends that all public sector organizations implement an e-HR system or equivalent. The PRB maintains the quota of 11 working days of leave per calendar year, with an annual accumulation cap set at 210 days.
Cautious Approach Amidst Budget Constraints
Overall, the PRB 2026 report favors a continuity approach while making targeted adjustments to protect the rights of public servants, support administrative modernization, and consider fiscal sustainability constraints.
15.3% Salary Increase Over Two Years
The release of the PRB 2026 report signifies an important step in the evolution of compensation and service conditions within the public sector, proposing an average salary increase of 15.3%, double that of 2021. However, given the current challenging economic and budgetary context, the Cabinet has opted for a phased implementation.
Unions Criticize the Report as Unfavorable to Workers
The PRB 2026 report has not been well received by unions, with widespread agreement that it does not benefit workers. Disparities between salary increases for Senior Chief Executives and General Workers have been highlighted as unjust by union representatives.
