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 (2300).

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.