Government to End Full Aasandha Subsidies for Income Taxpayers Earning Above MVR 60,000 a Month

Income taxpayers earning more than MVR 60,000 a month will no longer receive fully subsidised Aasandha coverage from next month, President Dr. Mohamed Muizzu has announced. The reform is expected to save the government approximately MVR 287 million annually.

Speaking at a press conference at the President’s Office, the President said those affected would continue to access the national health insurance scheme through revised payment arrangements. Options outlined include co-payments, pre-payments or an annual premium, with detailed regulations and procedures to be published in the coming days.

The President said the existing system provides identical full coverage to the wealthiest citizens and those facing financial hardship. He argued that adjusting subsidies according to income would allow public resources to be distributed more equitably.

Under the revised approach, income taxpayers above the MVR 60,000 monthly threshold would contribute towards their coverage rather than receive the full state subsidy.

The President said the anticipated savings would be redirected towards other essential public services and development needs.

The announcement follows earlier government measures to contain Aasandha expenditure, which has repeatedly exceeded its annual budget allocation.

Payment rates and the procedures for assessing eligibility were not specified in the announcement. The forthcoming regulations will provide further details on how the revised system will operate.