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.