Budget 2025: Seychelles' government proposes increases in salaries, minimum wage and pensions
A 7 percent increase in the basic monthly salary for public workers earning less than SCR21,368 ($1,500) and the same increase on the minimum wage as of April 1 next year, are being proposed in the Seychelles' 2025 Budget presented by the Minister of Finance, National Planning and Trade, Naadir Hassan, on Thursday.
Hassan is seeking the approval of the National Assembly for a proposed budget of SCR 11.9 billion ($880 million), the largest budget in the history of Seychelles. This represents an increase of 11.9 percent compared to the 2024 Appropriation Act, which was SCR 10.6 billion ($731 million).
Hassan said, «It is a budget whereby our people reap the benefits of our hard work and provides funding for investing in economic and social infrastructures that will ensure the wellbeing of our country for years and decades to come.»
He said in the total revenue «we are projecting for the year 2025, SCR 9.96 billion will be collected from tax revenues, representing 85 percent of our total revenue collection. However, we are projecting a collection of SCR 1.8 billion in non-tax revenue, and SCR 453 million in terms of grants. This total represents an increase of SCR 1.3 billion or 11.7 percent when compared to the revised budget for the year 2024.»
On the 7 percent increase in the basic monthly salary, Hassan said, «All workers earning more than SCR 21,368 will receive an increase of SCR1,500. This increase guarantees a minimum of SCR 500 for all full-time workers. This 7 percent increase also applies to home carers. [...] This SCR 1,500 cap is necessary to ensure that the salary increase remains sustainable. It is important to note that this salary increase does not apply to constitutional appointees.»
The increase and will cost SCR 115 million, which represents 0.3 percent of Seychelles' GDP and will have an annual impact of SCR 153 million.
On the minimum wage, the government has conducted an exercise and is proposing a 7 percent increase - from SCR 38.27 to SCR 40.95 per hour for employed workers. This means for a job based on 40 hours per week, the minimum wage will increase from SR 6,633.47 to SR 7,098 per month.
The rate for casual (part-time) workers will increase from SCR 44.10 to SR 47.19 per hour.
The minister also announced an increase in retirement benefits for the elderly starting in April 2025.
Pensions and retirement benefits
In Retirement Benefit, for those who qualify for a pension with a benefit greater than SCR 3,250, it will increase from SCR 5,750 to SCR 6,150. Pension with a benefit less than SCR 3,250, will increase from SCR 5,750 to SCR 6,400. For those who do not qualify for a pension, their retirement benefit will increase from SCR 5,750 to SCR 6,650.
Furthermore, all beneficiaries who were receiving social security before the creation of the Pension Fund, whose current retirement benefit is SCR 6,250, will have their benefit increased to SCR 7,150
Compared to the previous budget, in the 2025 Budget, the employment and social affairs portfolio, which includes expenses under benefits and programme at the Agency of Social Protection will get the largest portion of the - totalling SCR 1.57 billion. It represents 13.2 percent of the total budget.
The health portfolio budget is projected at a total of SCR 1.5 billion, representing 12.8 percent of the total budget. An allocation of SCR 1.4 billion is projected for the education portfolio, representing 11.8 percent of the total budget.
Sporting events and sports development
Hassan said in 2025, Seychelles will host two international sports events, in May, the FIFA Beach Soccer World Cup, and in July, the Indian Ocean Youth and Sport Commission (CJSOI)
«The government is allocating SCR 40.6 million in the budget under goods and services for the organisation of these events and our participation in the CJSOI, plus SCR 3 million for the FIFA Beach Soccer World Cup,» he added.
Budget allocations are also being made for sports development as high level events Seychelles will participate in.
«In 2025, a sum of SCR 5.75 million has been allocated to prepare athletes for the Olympics, African Games, Indian Ocean Games, and Commonwealth Games in the coming years,» he said.
Fisheries and the Blue Economy
From January 2025, the Seychelles Fishing Authority (SFA), in partnership with the European Union, will introduce a new pension scheme to encourage fishers to contribute towards their pensions on a voluntary basis.
«All fishermen interested in participating in this scheme will need to contribute 5 percent, and the SFA will contribute the other 5 percent. An amount of SCR 500,000 will be budgeted annually by the SFA. In this scheme, the contribution will be based on the minimum salary,» said Hassan.
Agricultural Development Fund
To facilitate access to financing for farmers, there will be certain amendments to the Agricultural Development Fund (ADF) scheme for the year 2025. Under this scheme, currently, agricultural land on a leasehold can be used as security for a loan up to the value of SCR 350,000.
The government is increasing the value of loans that can be secured with leasehold agricultural land to SR 850,000, provided that this represents no more than 70 percent of the land.
«We are also encouraging transformation in the agricultural sector, and in line
with this, we are ensuring that terms such as 'agro-tourism' and 'agro-forestry' are included in this scheme and well-defined to allow such projects to be financed under the ADF. Specialised vehicles—meaning vehicles that require specific training to operate and that are used for agriculture—will also be covered,» said Hassan.
The Budget Address will followed next week by the response from the Leader of the Opposition, Sebastien Pillay, of the United Seychelles Party, followed by the repose of the Leader of the Government Business, of the Linyon Demokratik Seselwa (LDS) Party, Bernard Georges.
