President Samia Increases Lump Sum Payments for Retirees

President Samia Suluhu Hassan has directed an increase in the lump sum payments for retirees across the country. This announcement was made by the Minister of Finance and Planning, Dr. Mwigulu Nchemba, during his presentation of the Government’s Budget for the fiscal year 2024/2025.

Dr. Nchemba revealed that President Samia has ordered the increase of the lump sum payments from the current 33% to 40%. This move is part of the President’s broader initiative to improve the financial security of retirees who have dedicated their careers to public service. These sectors include education, health, police, prisons, immigration, fire and rescue services, and other groups within both the central and local government structures

Additionally, another significant group that previously received 25% in lump sum payments will now see an increase to 35%. These changes are set to be implemented starting this fiscal year. The Minister emphasized that approximately 17 public servants who were adversely affected by previous changes will be considered in these new adjustments

In his budget speech, Dr. Nchemba also outlined the government’s ongoing and future projects, particularly in the agriculture sector. He highlighted the government’s commitment to irrigation projects, which are crucial for transforming agriculture into a business-oriented sector. The government plans to continue funding major projects step-by-step, ensuring that funds are allocated efficiently as projects progress

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The government is also enhancing the capabilities of the Tanzania Agricultural Development Bank (TADB) as a key driver in implementing President Samia’s vision of turning agriculture into a profitable business. This includes the identification and allocation of over 2 million hectares of land for agricultural use, with substantial investments in irrigation infrastructure. The government has already initiated feasibility studies for 22 irrigation schemes, aiming to cover over 300,000 hectares, and plans to construct new reservoirs capable of producing substantial water reserves

These measures underscore the government’s dedication to supporting both retired and active public servants, ensuring that their contributions to the nation are recognized and rewarded. The increased lump sum payments for retirees and the extensive agricultural initiatives reflect the government’s holistic approach to socio-economic development, aiming to foster stability and growth across various sectors.

The announcement of these increases comes as part of a broader effort to address financial challenges faced by retirees and to ensure that their post-service lives are comfortable.