Africa-Press – Tanzania. THE government has vowed to continue improving pension benefits, depending on the sustainability of pension funds.
Deputy Minister for the Ministry of Land, Housing and Human Settlements Development, Geofrey Pinda made the commitment yesterday while responding to a question from Jesca Msambatavangu (Iringa UrbanCCM). During the question and answer session, the Iringa lawmaker sought to know the government’s plans to raise the monthly pension amid rising costs of living.
In his response, Mr Pinda expressed the government’s keenness to improve pensions.
He explained that pension increases rely on regular assessments of the financial situation of pension funds to ensure they can support sustainably.
Mr Pinda said, determined to improve retirees’ welfare, the government has raised the minimum monthly pension from 100,000/- to 150,000/-, effective January 2025.
He added that pensions will be adjusted by an average of 2 per cent to reflect inflation rates. He assured MPs that as pension funds become more financially stable, the government will continue to review and increase pensions accordingly, to enable retirees to overcome rising living costs.
Last week the government announced that it will raise monthly pension for retirees paid directly by Treasury by almost 150 per cent in the next financial year.
According to the 2025/2026 budget proposal tabled in Parliament by Finance Minister, Dr Mwigulu Nchemba, the move reflects the 6th Phase Government’s appreciation of retirees’ significant contributions to national development.
In recognition to their services the government will increase the minimum pension for Treasury paid retirees from 100,125.90/- to 250,125.90/-, equivalent to 149.8 per cent increase, “said Dr Nchemba, noting that the changes will take effect from next month.
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