Employers FAQ

What is Maldives Retirement Pension Scheme (MRPS)?

MRPS is a contributory pension scheme funded through contributions from employees and employers while in employment.

The primary objective of MRPS is to ensure individuals save during employment to cater for their livelihood in retirement and ultimately creating financial independence. MRPS is a defined contributory pension scheme funded from contributions from both employees and employers.

How much is required to pay as mandatory contribution?

Presently, the Pension Act mandates a contribution of 14% of the pensionable wage, comprising of a minimum of 7% each from the employee and the employer.

The Act, however, allows the employer to contribute the total 14% of the basic salary (employer’s 7% and employee’s 7%) or part thereof, on its own (without taking any contribution from the employee). The Act further allows voluntary contributions from both employees and employers over and above the 7% floor rate.

Who can participate in MRPS?

Participation is mandatory for all the employers and their local employees between 16-65 years of age.

Foreign employees and self-employed persons can participate voluntarily.

What is pensionable wage?

Pensionable wage is employee’s basic salary declared in the employment contract.

Who is considered as an employee?

An employee is a person who is paid a salary/wage by the employer, is answerable to the employer, or is included in the administrative organization chart of the employer. This includes temporary, part time and contract staff as well.

Monthly salary is determined as the salary given to the employee every month or the salary that is given on a daily/weekly basis, summed up to a month or that which is given in any other way, summed up to a month.

Do the employees who are on probation need to be enrolled to Maldives Retirement Pension Scheme?

Yes, for the locals who are between 16 to 65 years age are required to be enrolled in MRPS as soon as they are employed and start contribution with the first salary payment.

Who is responsible for all the administrative work of enrolling employees and making contribution to MRPS?

The employer is responsible for all the administrative work of enrolling employees in the MRPS and making contribution to MRPS.

What are the steps to follow before enrolling employees in the MRPS and making contribution to MRPS?
  • First, to register in the Maldives Retirement pension Scheme, fill the form “Maldives Retirement pension Scheme Registration Form” and submit it to Pension Office.
  • Once the form is processed, the employer will be registered and the employer will be given access to Pension Office portal (by providing employer ID and passcode) in order to enrol employees and contribute on behalf of them.
  • Using the access to the portal, the employer can submit Statement of Pension Contribution (SPC) to enrol employees and make contributions.
How do we enroll the employees?

Once you get the access to pension Office portal by creating username and passcode, you have to fill the Statement of Pension Contribution (SPC) (SPC 300 or enrollment SPC) sheet with employees information. Once the sheet is ready, you can upload the SPC to the portal “Koshaaru”. When you get a receipt notice stating that the submission is “accepted”, then the employees will be enrolled.

How do we contribute to MRPS?

You have to fill the Statement of Pension Contribution (SPC) (SPC 101 or contribution SPC) and upload the SPC to the portal “Koshaaru”. Once you get a receipt notice stating that the submission is “accepted”, you will see the amount to be contributed in that receipt notice as a payment voucher. You may go to a bank (any branch of Bank of Maldives) with the receipt notice to pay the contribution, OR you may use internet banking to make the contributions. When you use internet banking to pay the contributions, you have to write Employer ID and payment voucher tracking number on the “Bank Portal Remarks”.

What is the last date of monthly contributions?

Monthly contributions must be paid on 15th day of the following month. (for example, January 2019’s contributions must be paid before 15th of February 2019).

Contribution date may change if 15th day falls on a public holiday. Contribution date will be notified to employers through Pension Office Portal “Koshaaru”.

What can be done if we notice a mistakes in the pensionable wages of some employees in the 101 SPC/Contribution SPC after the SPC is uploaded?

If you have noticed mistakes about pensionable wages in the 101 SPC, and if you have not paid the contribution, you may correct the mistakes and upload again. You can pay to the last receipt notice generated as the bank will accept the last receipt notice.

If you have noticed the mistake after paying the contribution, you have to upload an adjustment SPC (SPC 102) with correct pensionable wage; Not the salary amount that is less or more. If you mistakenly included wrong information or wrong amount and upload the SPC102, without trying to upload SPC 102 again, please contact Pension Office call centre (1441) to get assistance. If repeatedly uploading SPC 102 with wrong information, solving the issue will be complicated.

What will happen, if we are not able to make contribution before the contribution date?

If you have not paid the contribution before the contribution date, you will be fined. The fine amount will be included in the receipt notice  of the contribution SPC (SPC 101).

Do we have to register in MRPS even if we do not have employees?

If you do not have employees, it is not mandatory for you to register in MRPS. However, once you employ a staff, you have to register and enrol the staff to make contribution on behalf of the staff. In addition, if you need any documents from Pension Office, you need to register first and then request for the necessary documents. Pension Office  issue documents to Employers who are registered in MRPS.

Do we have to register foreign employees in MRPS?

No. The 2nd amendment brought to the Pension Act states that participation in the MRPS is voluntary for the foreign employees.

How do employers change information such as the registered business name, contact person, administrator details?

Employer should complete and submit “Information Change Request form”. The form can be emailed to [email protected]

If requesting to change employer’s registered business name, copy of new registration certificate or copy of any official document issued by the relevant government authority is required along with the form.

Do we have to terminate the employee who is reaching 65 on any date of the contribution month?

Yes. Contributions to the scheme stop at the pensionable age of 65. Contribution cannot be done to  the month the person reaches 65 years. So the employee has to be terminated using 300 SPC and you may instruct the pensioner to send “Pension Applicant’s information Form” in order to get Pension benefits from his/her RSA.

Accrued Pension Rights

What is Accrued Pension Rights?

Accrued Pension Rights is a benefit given to the state employees who were in employment on the date of ratification of the Pension Act provided that they are below 65 years on this date. Accrued Pension Rights was given according to the laws and regulations in effect prior to the ratification of the Pension Act.

Who is eligible for Accrued Pension Rights?

All those employees who were in the state employment on 13th May 2009 and have not reached 65 years of age on this date are eligible for Accrued Pension Rights.

How is Accrued Pension Rights calculated?

Accrued Pension Rights is calculated using the following formula.

Accrued pension rights = basic salary on 13 May 2009 × 93% ×14% × service period up to 30 April 2010.

The basic pension is designed to provide financial security for individuals who had no access to employment-based income prior to retirement age. BP scheme is a lifelong inflation-indexed pension benefit, fully funded by the Government provided to all Maldivian Citizens who have reached the age of 65, subject to meeting the eligibility criteria of the scheme.

What is Basic Pension?

Lifetime pension benefit is given to senior citizens as provided in Maldives Pension Act.

Am I eligible for Basic Pension?

Lifetime pension benefit is given to senior citizens as provided in Maldives Pension Act.

You are eligible if you meet the following conditions:

  • Should be a Maldivian citizen
  • Should reside in the Maldives.
  • Should be 65 years or older
  • Should NOT be in the full-time care of the State or Incarcerated upon conviction
  • Should NOT receive more than twice the amount of basic pension from any other pension scheme.

Claim process

When can I apply for Basic Pension?

6 months before reaching the age of 65, or any time after that.

How much would I receive as Basic Pension?

From March 2019 Basic Pension Amount is MVR 5000. For pensioners receiving pensions from other pension schemes the following adjustments will be made from the Basic Pension amount (MVR 5000):

  •  50% of the amount received from Maldives Retirement Pension Scheme
  • 100% of the amount the amount received from any other state funded pension scheme
  • Pensioners receiving more than double the amount of Basic Pension (MVR 10000) as pension from Maldives Retirement and pensioners receiving more than MVR 5000 from any state funded pension scheme are not eligible for Basic Pension
If I get any other state-funded pension, how much would I get as a basic pension?

If you are eligible for any other state-funded pension, 50% of that particular pension amount will be deducted from Basic Pension (5000).

How do I change my bank account number given to Pension Office?

Submit “bank account change form” which can be downloaded from www.pension.gov.mv

Is it possible to deposit my basic pension money to an account opened in a bank in another country?

Bank account must be a single or joint account opened in the pensioner’s name, in a bank operating in the Maldives.

Can I collect my Basic Pension in cash directly from pension office?

No. Your pension will be deposited into your bank account.

How do I apply for Basic Pension?

Fill and submit ‘Pension Applicants information form’. Can submit to Pension Office or to Island/Atoll councils.

1. To which account should the pension contribution be deposited?

Pension contribution should be deposited to the account (CCA) mentioned in the Receipt Notice

2. When using a cheque to pay pension contribution, which account name should be written as the 'Payee name'?

Paying pension contribution by Cheque - The 'Payee name' in the contribution Cheque shall be "CCA"

3. What are the acceptable methods of pension payments?

Acceptable methods of pension payments: By cheque or cash presented to BML counters or online transfers to CCA

4. When paying pension contributions using online transfer, is there anything special I should do?

For first-time online transfers, it is advised to send an email to [email protected] with the details - Employer ID, Tracking number, and Amount.

5. Is it possible to use an ATM to deposit to pay pension contributions?

We do not encourage ATM deposits to CCA due to complications in identifying the specific Employer. However, after depositing, it is advised to send an email to [email protected] with the details - Employer ID, Tracking number and the  Amount.

6. If an employer submits mistakenly, an spc with an employee’s wrong contributions (underpayment or overpayment made on behalf of an Employee), what shall the employer do?

The Employer shall submit correct adjustment (SPC) for any underpayment or overpayment made on behalf of an Employee

7. Where can we find training materials such as video presentations detailing instructions on SPC submission?

Video presentation detailing instructions on SPC submission is available on Pension Office website, and Facebook page.

8. What is the due date for SPC submission and payment of pension contributions?

Due date for SPC submission and payment of pension contribution for the current month is 15th of the following month.

9. Is there a fine for late submission of contribution SPC(101)?

A fine of 100.00 is imposed for late submission of contribution SPC(101)

10. Is there a fine for paying monthly pension contributions after the due date?

Late payment fine of 0.5% of the total pending contribution will be imposed monthly

11. If the pension payment due date falls on a holiday, what will be the deadline for the pension payments?

If the pension payment due date falls on a holiday, the deadline will be extended to the next working day and will be published on employer portal.

12. Who is responsible for ensuring that the 'Employment Agreement' contains a clause that states pension contributions will be made?

The employer shall ensure that the 'Employment Agreement' between the employer and employee contains a clause that states pension contributions will be made and the amount that shall be deducted from the salary.

13. Should the employee be enrolled in MRPS during his/her probation period?

Employees shall be enrolled in MRPS from the date of commencement of employment (including probation period)

14. Should the employees working on contracts shall also be enrolled in MRPS?

Yes, Employees working on contracts shall also be enrolled in MRPS

15. Who should keep the records of pension related documents? Employer or employee?

The employer shall ensure correct records are maintained. 

16. What shall be done to the employees who are terminated from their job?

Employees who are no longer employed shall be terminated from Koshaaru

17. To which account pension contribution should be deposited?

Pension contributions are collected to CCA through Bank of Maldives. 

18. How long will it take to reconcile the pension contributions?

Payment reconciliation may take up to 3 working days, from the date of payment

19. Would the employer be notified when the pension payment is reconciled?

The employer will receive an SMS when the payment is reconciled.

20. What is the importance of updating the contact information in the SPC?

The employer shall ensure contact information in the SPC is up to date since an auto-generated SMS will be sent to the number in SPC when the payment is reconciled.

21. Can the employer submit 101 SPC before the last payment was reconciled?

It is advised not to submit another contribution SPC(101) until the previous payment is reconciled. When the payment is reconciled, the employer will get an SMS

22. Should the employees who have attained 65 years of age, contribute to the MRPS if they are employed?

Employees after attaining the age of 65 shall not contribute to MRPS, even if they are employed afterwards

23. Is it mandatory for the employer to deduct from salary for the pension contribution before paying the salary?

Employer shall make deductions from an employee's salary before paying the salary to the employee

24. When can the Pension Office file a court case against an employer regarding the pension contributions?

The Pension Office has the right to file charges in Court if employers fail to make payments within the duration specified in the "Notices" served

25. What are the possible deductions that can be made before deducting salary for the pension contributions?

An employee's pension contribution amount shall be calculated after making deductions from the basic salary, for late fine and charges for absent days

26. Who is responsible for making contributions to MRPS?

The 'Employer' is responsible to enroll and make contributions to MRPS on behalf of the Employees of age between 16 and 65

27. How can the members check their RSA details?

Each member of the Maldives Retirement Pension Scheme has a Retirement Savings Account (RSA). Pension contributions and account details can be checked using the Pension App anytime

28. Can the employer pay the total 14% as pension contribution?

An employer may make contributions exceeding the minimum amount an employer has to pay. Instead of deducting from the salary of employee, the employer can contribute the total 14% on behalf of the employee

29. Can employees make additional contributions to their RSA?

Employees can make voluntary contributions in addition to the mandatory contribution. The additional contribution will also be part of the Retirement Savings Account (RSA)

30. For how long does the employer has to maintain the following records? Salary sheets, Statement of Pension Contribution (SPC) or any other report sent to Pension Office; and Employment contracts

Employer shall maintain the following records for at least 6 years: Salary sheets, Statement of Pension Contribution (SPC) or any other report sent to Pension Office; and Employment contracts

31. What is the condition for PensionOffice to disclose employers information on Pension Office website as "Non-compliant Employers"?

Employers in breach of Pension Act and Regulation on MRPS in terms of making payments will be served Notices and disclosed on Pension Office website, as "Non-compliant Employers"

32. Should the employer state the pension contribution deduction in both the salary sheet and salary deposit slips?

The amount deducted from an employee's salary towards pension contribution shall be stated in the salary sheet, and the employee shall be informed of the same by a payslip

33. Should the pension contribution amount entered on the salary sheet match with the amount declared on the Statement of Pension Contribution (SPC)?

The amount deducted from an employee's salary for pension contribution in the salary sheet, and the amount stated in the Statement of Pension Contribution (SPC) submitted to the Pension Office shall be the same.

34. What is the maximum amount that can be deducted from an employee’s salary for pension contribution?

The maximum amount that can be deducted from an employee's salary for pension contribution is 7%

35. Can the employers make payment for all the 102 SPCs as one payment?

Employers shall make payments separately for each "Adjustment SPC" (SPC 102) submission

36. Do you need assistance on submission of Statement of Pension Contribution (SPC)?

If you need assistance on the submission of SPC, please call 1441 during working hours or refer to SPC submission tutorial videos on our website

37. How does Pension Office make sure that the employers are compliant?

Employer compliance to the Pension Act and Regulation on Maldives Retirement Scheme are monitored by the Pension Office through inspections. The employer shall make sure documents are maintained as per the Regulation

38. What are the actions taken after conducting an inspection of the employer?

After completion of the compliance check inspection, findings will be shared with the Employer. A specified time period is given to make amendments if any


39. When are the Training sessions on submission of Statement of Pension Contribution (SPC) held and how can the employers/members register for training?

Training sessions on submission of Statement of Pension Contribution (SPC) are held at the Pension Office every Thursday from 11 AM - 12 PM. To attend the training, members can register through the Pension Office website, or call 1441

40. Is it mandatory for foreign employees and self-employed people to participate in Maldives Retirement Pension Scheme(MRPS)?

It is not mandatory for foreign employees and self-employed people to participate in the Maldives Retirement Pension Scheme (MRPS). However, they may participate in MRPS voluntarily

41. What is the procedure to change the existing information provided by the employer?

The employer shall complete and submit the "Information Change Request Form" if there is a change in registered business name, contact person, address  or Administrator details

42. Is it mandatory for all the employers to register in Pension Office? What is the procedure for employers to register in Pension Office?

All public and private employers shall be registered in Pension Office, enroll all employees working in the organization, and make contributions to the Maldives Retirement Pension Scheme (MRPS) on behalf of the employees. To register, complete, and submit "Employer registration form" available on Pension Office website and at Reception

43. What are the actions taken to employers who fail to make the pension contribution before the deadline?

Notices are served to Employers who fail to make payments within the duration specified in Pension Act and Regulation on Maldives Retirement Pension Scheme (MRPS). Employers shall comply with the notice within the period specified

44. Who should follow the "Regulation on Maldives Retirement Pension Scheme"?

The "Regulation on Maldives Retirement Pension Scheme" applies to all participants (Employers, Employees, and Self-Employed) of the Maldives Retirement Pension Scheme. It is important for all participants to comply with the Regulation

45. If an employee is employed in two organizations, should pension be contributed from both the organizations?

If a member of the scheme is employed in more than one place, then each employer shall contribute to the scheme on behalf of the employee

46. If an Employer notices an underpayment made on behalf of an employee, how should the employer correct the contribution?

If an Employer notices an underpayment made on behalf of an employee contrary to the mandatory contribution, the employer shall submit the correct SPC and make payment

47. If an employer by mistake makes an overpayment on behalf of an employee, how can the employer recover the overpaid amount?

If an employer by mistake makes an overpayment on behalf of an employee, the employer may request for the amount to be rectified within 1 year, starting from the month an overpayment has been made

48. Whose responsibility is to return the overpaid amount to the employee or to collect the contribution from the employee in case of underpayment?

In the case of an overpayment or underpayment, it is the responsibility of the Employer to return the overpaid amount to the employee or to collect the contribution from the employee in case of underpayment

49. What should the employee do if there is a complaint regarding pension contributions?

Employee claims related to pension contributions shall be first communicated with the Employer. If the claims are not resolved, the Employee may refer the claim to the Pension Office for review within 12 months

50. What is the fine imposed on employers for failure to register in Pension Office?

Fine imposed on Employer for failure to register in Pension Office - Mrf 500

51. What is the fine imposed on employers for late submission of Statement of Pension Contribution (SPC)?

A fine of Mrf 100 is imposed for the month an Employer fails to submit the Statement of Pension Contribution (SPC)

52. What is the fine imposed as late payment fine for making the pension contribution after the deadline?

Fine imposed on late payments: 0.5% of the total contribution amount for each month

53. What is the fine imposed on employers for failure to keep the records?

An employer may be fined between Mrf 500 - 50,000, for failure to keep records, depending on the extent of non-compliance with the Regulation on Maldives Retirement Pension Scheme

54. How is monthly salary defined for the purpose of pension contribution?

"Monthly Salary" refers to the salary given to the employee every month or the salary that is given on a daily basis, monthly basis or in any other way; summed up to a month

55. What is the definition of an employee for the purpose of pension?

For the purpose of Pension, an Employee is defined as "Employee- is paid a salary by the Employer, is answerable to the Employer, or is included in the administrative organizational structure of the Employer"

56. How is pensionable wage defined for the purpose of pension contribution?

"Pensionable wage" is referred to the basic salary specified in the Employment Contract

57. Should the employer enroll the employees in the Pension office even if they are part time or contract employees?

Part-time, contract, daily waged workers shall also be enrolled in the scheme from the date of commencement of employment

58. What is the mandatory pension contribution amount to be paid by both the employer and employee?

Mandatory pension contribution: The Employee shall make 7% of the pensionable wage of the Employee, and the Employer shall make a contribution of 7% of the Employee's pensionable wage

59. What is the procedure to register employers in Pension Office?

For Employer registration, complete and submit "Employer registration form" available on Pension Office website and at Reception

60. What is the procedure to enrol employees in Pension Office?

To enroll employees, Employer shall complete and submit the enrollment SPC (300)

61. Is it important for the employer to pay the exact amount in the receipt notice?

Employer shall make sure payment is made for the exact amount in the Receipt Notice

62. What is the procedure to make pension contributions for employees?

To declare monthly pension contributions, the Employer shall complete and submit the contribution SPC(101)

63. If an employee who has access to Koshaaru portal is no longer in employment, what should the employer do?

An employee who has access to Koshaaru portal is no longer in employment, it is important to deactivate the user immediately