LILONGWE-(MaraviPost)-The Peter Mutharika’s government has pledged to settle all outstanding pension arrears dating back to 2023 in a move aimed at restoring dignity and financial stability for retired civil servants.
Minister of Finance, Economic Planning and Decentralisation, Joseph Mwanamvekha has assured the ongoing August House budget review session.
The minister was responding to concerns raised by the Member of Parliament for Mulanje West, Patricia Kaliati, who questioned the prolonged delays in pension payments.
Mwanamvekha acknowledged that retirees who served the nation with dedication have endured financial hardships due to the accumulation of unpaid benefits.
He explained that the K196 billion allocated for pensions in the 2025/2026 National Budget includes provisions to settle all outstanding payments owed to former public servants.
According to the minister, the Ministry of Finance has developed a systematic plan to ensure that all arrears are paid without further delay.
“This new administration led by Professor Arthur Peter Mutharika wants to clear the total amount that is outstanding, which is our intention in accordance with the current budget,” said Mwanamvekha.
He further announced that the payment process will follow a first come, first served approach to ensure fairness and transparency.
Under this arrangement, retirees who left the civil service three years ago will be paid first, followed by those who retired two years ago, and then more recent retirees.
Mwanamvekha emphasised that the government is committed to addressing inflation as part of broader efforts to protect the value of pension payments.
He noted that high inflation erodes the spending power of pensioners, making it difficult for them to afford essential goods and services.
The minister added that salary adjustments for civil servants and an increase in the private sector minimum wage will be considered in the next budget cycle starting in March.
According to Mwanamvekha, these measures will form part of a long-term strategy to enhance social protection and improve the economic well-being of both active workers and retirees.
The announcement has been welcomed by many stakeholders who have long called for decisive action to address pension inefficiencies and delays.
Retirees across the country are now hopeful that the government’s pledge will translate into timely payments and restored financial security.
As the Ministry of Finance prepares to roll out the payment plan, public attention remains focused on whether the commitment will be implemented efficiently and without further setbacks.
