Le National Pension Fund change de nom pour s’appeller au mois de Septembre 2020 Contribution Sociale Généralisée et les premiers paiements sous le nouveau sera fait à partir de Juillet 2023 a indiqué le Dr Renganaden Padayachy lors de la présentation du budget 2020-2021.
A Sustainable Pension System
158. The pandemic has changed the lives and livelihoods of billions of citizens worldwide, and our country has not been spared.
159. We are no longer in an era of endless growth.
160. And our demographic trend, with an ageing and decreasing population, as underlined by various international institutions, make our pension system unsustainable for the future.
161. We need to act and we need to act today.
162. We are therefore proposing a pension reform which is fair, equitable and sustainable for our economy.
163. We are maintaining and guaranteeing the Basic Retirement Pension (BRP) to all individuals at the age of 60 years and above.
164. This universal monthly benefit of Rs 9,000 will continue to be paid to each and every one. Mr Speaker, Sir,
165. Henceforth, all increases in benefits to our elderly will be paid through a completely new mechanism.
166. We are introducing a contributory, participative and collective system, the Contribution Sociale Généralisée (CSG).
167. This will ensure an additional guaranteed monthly income to citizens above the normal retirement age of 65 years old.
168. The first payment of benefits under the CSG will be in July 2023.
169. Under this new system which will be effective as from 1st September 2020, employees earning up to Rs 50,000 monthly, will contribute 1.5% and their employers 3% on monthly salary.
170. For employees earning more than Rs 50,000 monthly, the contribution will be 3% and that of employers 6% of monthly salary.
171. This new system will also include self-employed individuals. Mr Speaker, Sir,
172. As a result of this reform, we are abolishing the contribution to the National Pension Fund, while continuing to pay benefits to each and every one who has previously contributed to the NPF Fund.
173. We are abolishing the NPF as it is not only unsustainable but also unfair and regressive.
174. Under the NPF, an employee contributes 3% of his basic salary and the employer 6%. The rate of contribution is applied on a ceiling of Rs 18,740, irrespective of the basic salary.
175. That is, if an employee earns the minimum wage, he currently contributes Rs 306 monthly, that is 3% of his basic salary.
176. If an employee earns Rs 1,000,000 monthly, Mr Speaker, Sir, he contributes Rs 562 that is less than 0.06 percent of his salary.
177. This shows how unfair is the NPF system.
178. Under the Contribution Sociale Generalisee, we will thus move towards a more progressive system of contribution which will benefit those at the lower-end of the ladder as well as SMEs.
179. It is a contributory, participative and collective system.
180. Today’s generation will contribute towards ensuring higher benefits to our elders.
181. And tomorrow, our children will contribute to ensure that we enjoy a decent retirement.
182. If an employee is earning the minimum wage today, instead of contributing Rs 306 under the NPF, he will contribute only Rs 153.
183. If an employee is earning Rs 25,000 today, instead of contributing Rs 562 under the NPF, he will contribute only Rs 375.
184. Under this mechanism, more than 70 percent of employees will be contributing less today and earning more tomorrow. Mr Speaker, Sir,
185. Whilst we transform our system to make it more equitable, we are aware that there are today tens of thousands of Mauritians working informally as household employees, construction workers, gardeners, helpers and carers.
186. The majority of them are unable to access the contributory pension system and do not benefit from their years of service.
187. To this end, Mr Speaker, Sir, I am introducing the Service Employment Cheque in Mauritius as from September 2020.
188. This measure will ensure that these workers benefit, over and above the Basic Retirement Pension (BRP), from the CSG.
189. We are further enhancing our means to help the most vulnerable group.
190. The practical difficulties faced in financially helping them during the lockdown period lead us to the following:
(a) Government will facilitate the setting up of a Bank Account for each citizen at birth.
(b) An amount of Rs 150 will be paid by Self-Employed individuals to the CSG.