Increase in social security cheques |21 April 2016

Social security cheques have risen by 40%, that is R1,450 each month to R5,050 for all retired workers in Seychelles.

Just under 10,000 pensioners will see the bump in their cheques starting today.

Speaking to Seychelles NATION, Agency for Social Protection (ASP) chief executive Marcus Simeon said “in total just under 10,000 pensioners are benefiting from this increase of R1,450 in their benefit,” adding that “a total of 2,600 are being paid this benefit directly with the Seychelles Pension Fund lumped together with their contributory pension.”

Mr Simeon explained that the rest is being paid directly by the ASP.

As for those whose funds are transferred in their bank accounts, they have already received their increased dues since Tuesday while those being paid by cash will receive theirs today and tomorrow for districts in south and west Mahe.

President James Michel announced in his State-of-the-nation address that the social security/retirement pension would increase to R5,050 to match the minimum wage.

“This is very good news and I am very happy to receive the increase in my retirement pension,” said a 69-year-old lady Seychelles NATION spoke to.

"I think it's generous of the government to give us an increase. I have already received mine. Now I can manage my life much better and I feel secure,” she added.

Over the last 10 years, the rate of social security has increased 12 times. From R1,750 in 2006, it increased to R1,800 in 2007, R1,850 until October 2008, R2,200 from November 2008 to 2009, R2,300 in 2010, R2,400 in 2011, R2,550 in 2012, R2,750 in 2013, R2,950 in 2014, R3,100 until November 2015, R3,600 from December 2015 to March 2016, and R5,500 from April 2016.

Mr Simeon explained that “the increase in social security and retirement pension in April required a further R14 million and this translates to R126 million until December.”

The increase in social security and retirement pension is one of several government priorities for the year.

Another one of the priorities having a direct positive impact on pensioners is the loans for renovation and repair of their homes. A person who is 63 years and older, and is the owner of his/her home, can now apply for up to R50,000 for renovation or repair works on the house. The home owner can also get a loan of up to R100,000 for re-roofing. These special loans carry no interest.

Furthermore, government subsidises by 25% all loans to pensioners under this scheme. This means that when a pensioner decides, for example, to take a loan of R100,000 to repair his/her house, he/she will have only R75,000 to repay, and no interest.

Pensioners can also travel between Mahe, Praslin and La Digue at a reduced cost.

President Michel also said in his address that his government will continually address the issue of disparity in the standard of living which exists in our society.