Government has raised pensioners’ monthly drawings by 20 percent, but the beneficiaries say they are not impressed.
Secretary to the Treasury Betchani Tchereni, in a memo addressed to the Accountant General, said the adjustment was with effect from May 1 2025.
He further said the increment was in line with government policy, which provides for the same whenever there is a salary increase in the public sector or previous fiscal year’s average Consumer Price Index up to a maximum of 10 percent.
Reads the memo in part: “In line with this policy, an average pension increase of 20 percent has been approved. Pensioners who retired prior to the pension reforms of October 2004 will receive a higher percentage adjustment compared to those who retired after that date.
“This differential adjustment aims to reduce the significant pension gap currently existing between the two groups of retirees.”
Public Accounts Committee of Parliament chairperson Mark Botomani, in an interview yesterday, said the issue of monthly pension upwards adjustment was presented during the 2025/26 budget cluster meetings. However, he could not recall the exact percentage that was proposed.
“I can confirm that there was a presentation that was done by the Accountant General and there was a proposal for pensioners’ increment,” he said.
When contacted, Tchereni referred The Nation to Ministry of Finance and Economic Affairs spokesperson Williams Banda who asked for more time to consult.
Meanwhile, the Association of Retired Civil Servants has expressed dissatisfaction with the adjustment.
The group’s president Nellie Mkhumba noted that the 20 percent adjustment does not match the current cost of living.
“Inflation in Malawi is very high and most pensioners cannot afford considering that we have no other incentives,” she said.
In October last year, government approved the increase of the minimum monthly pension for 12 013 least paid retirees to K100 000.
