In line with the government’s commitment to “review the pension payment for pensioners and the elderly,” an update on the progress was presented during the 12th “Meet the Press” session, held on February 7, 2025. The Finance Minister announced that the Ministry would be submitting recommendations to the Cabinet.
The Finance Minister explained that the existing pension system currently covers only civil servants, corporate employees, armed forces personnel, and a limited number of private sector workers. As of now, the pension scheme includes just 64,904 people, which is less than 9% of the total population. The majority of the private sector, public officials in local governments, parliament members, and those not in salaried jobs are completely excluded.
According to statistics maintained by the Royal Monetary Authority, more than 79.8% of senior citizens lack savings, leaving them vulnerable to income and livelihood insecurities as they grow older. Most are not covered by formal pension systems.
The Finance Minister also pointed out that only a few public officials receive a good monthly income and are eligible for tax-free pensions, while the majority of Bhutanese citizens have no access to pension schemes.
He emphasized that there is a pressing need for comprehensive policies that explore the introduction of a formal social protection system, ensuring coverage for the entire population, especially senior citizens and other vulnerable groups.
The National Policy for Senior Citizens, launched on December 21, 2024, by the Prime Minister, Dasho Tshering Tobgay mandates the exploration of expanded pension coverage for all senior citizens. This will be achieved through the introduction of various pension products and schemes, including both contributory and non-contributory options. To enhance social security under the 13th Five Year Plan (FYP), the government has allocated Nu 2 billion for the implementation of this social protection system.
The Finance Minister also stated that taking care of elderly citizens would relieve the younger generation of the burdens of care-giving and other employment-related pressures.
He further remarked, “While we can implement plans and actions through policy, preserving our deep-rooted cultural traditions is even more important. The government can frame policies, but when it comes to the welfare of elderly citizens, education on this should start within the family. Values are crucial in fostering a society that honors and supports its senior citizens.”
He reiterated that the Ministry of Finance would work closely with relevant agencies such as the National Pension and Provident Fund (NPPF), Cabinet Secretariat, and RMA to review the existing legal frameworks of the NPPF, strengthen the NPPF Board, and submit the necessary recommendations.
Sonam Wangmo from Thimphu
