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# [MAURITIUS] Pension Reform: BRP Abolished on 1 January 2027, New SAP Adjusted by Age and Income
- URL: https://businessoi.media/en/maurice-reforme-des-pensions-la-brp-supprimee-au-1er-janvier-2027-la-nouvelle-sap-modulee-selon-lage-et-les-revenus-en/
- Published: 2026-10-11T02:46:05.000Z
- Updated: 2026-10-11T02:46:05.000Z
- Description: From 1 January 2027, Mauritius replaces the BRP with the State Age Pension (SAP). Base pension: Rs 16,555/month at 65, with income means test and age-based adjustments.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Finances publiques, Économie, Revue matinale, #en

**From 1 January 2027, Mauritius abolishes the Basic Retirement Pension (BRP).** It is replaced by the State Age Pension (SAP), a fully revamped scheme that adjusts pension amounts based on the retiree's chosen retirement age and income level. The measure, announced in Budget 2026-2027, is awaiting legislative promulgation.

## Reference Pension: Rs 16,555

The SAP base amount is set at **Rs 16,555 per month at age 65**. It decreases by 0.5% for each month taken before 65 (roughly 6% per year), and increases by 0.75% for each month deferred beyond 65 (roughly 9% per year). In practice, a retiree claiming at 60 would receive **Rs 11,589** monthly; one waiting until 70 would receive **Rs 24,005**.

## A Two-Tier Means Test

The structural innovation is the means test. Above **Rs 14,000 in monthly taxable income** (the World Bank's relative poverty threshold), the SAP is reduced by 50 cents per additional rupee. A floor of Rs 1,000 is maintained up to Rs 50,000 income; beyond that, no state pension is paid. The government says over 90% of retirees will continue to receive the benefit.

## NPF Switches to Defined Contributions

Simultaneously, the National Pensions Fund moves to defined contributions on 1 July 2027\. Employees earning up to Rs 50,000 will contribute 1.5% of their basic salary; employers will contribute 7.5%. Senior state officials lose the right to cumulate pensions, and their salaries become taxable from July 2026.

## Why It Matters

This reform marks a turning point in Mauritius's social contract. By introducing actuarial logic and an income test, Mauritius aligns itself with advanced economy pension standards — while seeking to protect its most vulnerable citizens. For businesses, the rising NPF contribution rate is a cost parameter to factor in now.

*Source: Le Mauricien, 7 August 2026\. Budget 2026-2027, Ministry of Finance.*