Pensioners get 4.2% pay rise

By Thokozani Mazibuko

Pensioners under the Public Service Pensions Fund (PSPF) will see a welcome boost to their monthly payouts this month, following the approval of a 4.2% increase in pension annuities.

The adjustment, backdated to April 15, 2025, will be reflected in the August payroll, bringing much-needed relief to thousands of retirees navigating the country’s rising cost of living.

In a statement released by PSPF Management, the Fund confirmed that the increase had been authorised by the Minister of Public Service, Honourable Mabulala Maseko, in consultation with the PSPF Board of Trustees.

The increment falls under the Cost of Living Adjustment (COLA) framework, aimed at cushioning pensioners from the impact of inflation and price hikes.

“The Public Service Pensions Fund is pleased to inform all its pensioners that the Minister of Public Service, Honourable Mabulala Maseko, in consultation with the Board of Trustees, has approved a pension increase of 4.2% for all PSPF pensioners with effect from 15 April 2025. The COLA will be effective in the August 2025 pension payroll,” the statement reads.

While the 4.2% adjustment is seen as a step in the right direction, some pensioners say it is “long overdue” given the current economic climate.

In recent years, the cost of basic goods, healthcare, transport, and utilities has steadily climbed, leaving many retirees struggling to make ends meet on fixed incomes.

Economic analysts note that although inflation in Eswatini has eased slightly compared to last year’s highs, the purchasing power of pension payouts has been eroded. COLA adjustments, they say, are essential to maintaining retirees’ dignity and ensuring they can meet their daily needs.

It is worth mentioning that the PSPF Board of Trustees has long emphasised the need to balance pension fund sustainability with the welfare of its members.

Sources within the Fund explained that COLA decisions are based on inflation trends, fund performance, and actuarial assessments to ensure the Fund can continue meeting obligations to current and future pensioners.

For many retirees, the news comes as a financial lifeline. “It might not cover all the rising expenses, but at least it’s something to help us cope,” one pensioner commented.

The PSPF has encouraged pensioners to seek financial advice on how best to manage their increased payouts, especially considering ongoing economic uncertainty.

The Fund reiterated its commitment to regular reviews of annuity payments, dependent on fund performance and government policy directives.

It should be noted that as August’s payroll approaches, thousands of pensioners across the country will be awaiting the arrival of their slightly heavier pay packets — a modest but meaningful nod to their years of service to the nation.