IT will be all smiles for pensioners if the government proposal to increase the lump sum payment to retirees from current 33 per cent to 40 per cent will be endorsed by the National Assembly.
Tabling the national budget for 2024/25 in the August House in Dodoma on Thursday, Minister for Finance, Dr Mwigulu Nchemba said the move aims at addressing concerns raised regarding the welfare of retirees and those on the verge of retirement.
Dr Nchemba said, "There has been a significant outcry from retirees regarding the pension calculator and the government has acknowledged and addressed the concerns raised regarding the welfare of the retirees and those on the verge of retirement." This followed a directive from President Samia Suluhu Hassan to the ministry, to enhance lump sum payments from the current 33 per cent to 40 per cent for employees, who were previously receiving 50 per cent but reduced to 33 per cent.
"This encompasses a substantial portion of our workforce, including teachers, health professionals, law enforcement officers, correctional officers, immigration officials, firefighters and various other public servants at both national and local levels," he said.
Dr Nchemba said that President Samia has also approved additional increment for the group formerly receiving 25 per cent, then elevated to 33 per cent, to be paid 35 per cent effective in the next financial year.
He added that the government reaffirms its unwavering commitment to prioritise the well-being of retirees, while also meticulously considering the long-term viability and sustainability of pension funds and that demonstrates the President's passion for the wellbeing of all Tanzanians.
Furthermore, he said the government has persistently ensured the timely settlement of both salary and non-salary arrears owed to public servants are paid on time.
"Over the past three years the government has disbursed 98.63bn/- to clear various arrears for public servants and allocated a total of 160.04bn/- to facilitate promotions for approximately 126,814 public servants across various ranks," said Dr Nchemba.
"All these notable achievements have been attained under strong leadership of President Samia and Chairperson of the ruling party CCM through the support of Tanzanians in all capacities including farmers, workers, businessmen, and manufacturers.
