
Old Age Benefits
What are old-age benefits and what are they for?
The purpose of the Old Age Pension is to replace the income from work (salary) of workers who reach the minimum age legally established as adequate to cease professional activity and, therefore, stop working.
Who is eligible for the Old Age Pension?
The Old Age Pension is available to citizens not covered by the contributory regime and to workers who contribute to the contributory regime (regardless of the sector of activity, public or private), provided that the conditions of access are met.
State workers who were covered by the transitional social security regime (in force from 20 May 2002 until 30 September 2017) also benefit from the Old Age Pension:
if, by 30 September 2017, they met the conditions for access to the old-age pension (qualifying period and age) and applied for the pension, the calculation and rules relating exclusively to the transitional social security regime for calculating their old-age pensions were applied to them, and are not subject to any changes.
if by 30 September 2017 you met the conditions for access to the old-age pension (qualifying period and age) but did not apply for the pension and remained in employment, your pension will be calculated exclusively taking into account the calculation formula of the transitional regime (closed group).
if, on 1 October 2017, they remained in professional activity and began to contribute to the general contributory regime (regardless of the sector of activity, public or private), the calculation of their old-age pensions will take into account the time and remuneration earned during the period in which the transitional regime was in force (from 20 May 2002 to 30 September 2017) and during the period of validity of the general contributory regime (from 1 October 2017).
Old-Age Social Pension - Non-Contributory Regime
The old-age pension of the non-contributory regime is called Old-Age Social Pension and is a monthly cash pension granted to nationals residing in Timor-Leste, not covered by the contributory regime, who have reached at least the minimum age legally established for access to the old-age pension: currently 60 years.
It applies to nationals resident in Timor-Leste who are not covered by the contributory regime.
- Have Timorese nationality and reside in national territory at the time of submission of the application.
- Not covered by the contributory regime (no contributions or insufficient contributions)
- You are aged 60 or over, the legal age for access to the old-age pension: currently 60 years old
- Apply for the old-age social pension:
- Complete and submit the application form for the old-age social pension .
- Attach Statement of residence in national territory, issued by the head of suco.
- The citizen himself
- The citizen's legal representative
- The State when the citizen is incapacitated or interdicted and has no legal representative
You can apply for the old-age social pension at any time after reaching the minimum age legally set for access to the old-age pension (currently 60), with no maximum deadline.
The old-age social pension is payable from the month of receipt of the duly completed application and provided that the pension conditions are met.
- In person at social security centres in Dili, in the municipalities and in RAEOA.
Or
- By email to seguranca.socialtl@gmail.com (the application sent via email must be duly completed, signed and contain all attachments - application and scanned attachments)
Or
- Online (under construction)
The monthly amount of the old-age social pension is calculated by the following formula:
PS = VD x 30 |
PS = the monthly amount of the social pension
VD = The daily value considered the minimum necessary for living with dignity, estimated by the Government of Timor-Leste, according to the poverty line and the economic situation;
30 is the number of days in each month.
Currently, VD is 2 USD, so the current amount of SP is 60 USD per month (2 USD x 30 days =60 USD).
For beneficiaries of older age, the monthly amount of the Old-Age Social Pension is increased by an additional amount, taking into account the following brackets:
Brackets | Age | Additional amount of the Old-Age Social Pension |
Bracket 1 | 70-79 years old | + 20 USD |
Bracket 2 | 80 + years old | + 40 USD |
Therefore, a beneficiary aged between 70 and 79 years will be entitled to an Old-Age Social Pension of 80 USD per month (60 USD base value + 20 USD additional amount = 80 USD); and a beneficiary aged 80 or older will be entitled to an Old-Age Social Pension of 100 USD per month (60 USD base value + 40 USD additional amount = 100 USD).
Payment of the old-age social pension is monthly, and 12 months are counted each year.
The old-age social pension is paid monthly (12 months) until one of the following situations occurs:
- Death of the beneficiary
- Loss of Timorese nationality
- Change of residence of the beneficiary abroad
- Return to work or any other professional activity
- Failure of beneficiaries to fulfil their duties for a period of more than 120 days
Making false statements or omissions which have resulted in the social pension being awarded or maintained unduly
The old-age social pension cannot be accumulated with income from work or any other activity.
Old-Age Pension - General Contributory Regime
The Old Age Pension of the general contributory regime is a monthly cash pension granted to workers (contributors) who have reached at least the minimum age legally set for access to the old age pension (currently 60 years) and who fulfil the conditions of access.
It applies to all workers exclusively covered by the general contributory regime, including private sector workers, workers who optionally join the general regime, and public sector workers who only started working after 1 October 2017 (and were therefore never covered by the transitional regime).
- Be enrolled in the Contributory Social Security Regime
- You are aged 60 or over, the legal age for access to the old-age pension: currently 60 years old
- Comply with the qualifying period:
- What is the qualifying period:
- 60 months (5 years) of contributions (from 2017 to 2022)
- 66 months (5.5 years) of contributions (in 2023)
- 72 months (6 years) From contributions (in 2024)
- 78 months (6.5 years) of contributions (in 2025)
- 84 months (7 years) of contributions (in 2026)
- 90 months (7.5 years) of contributions (in 2027)
- 96 months (8 years) of contributions (in 2028)
- 102 months (8.5 years) of contributions (in 2029)
- 108 months (9 years) of contributions (in 2030)
- 114 months (9.5 years) of contributions (in 2031)
- 120 months (10 years) of contributions (from 2032)
- How the qualifying period is calculated:
- The qualifying period includes:
- the periods of contribution in the general social security system of Timor-Leste
- periods of contribution to social security regimes abroad, covered under international agreements, provided that they do not overlap
- the days on which employees received parental benefits.
- The qualifying period includes:
- What is the qualifying period:
- Claim the old-age pension:
- Complete and submit the old-age pension application form
- If there is a period of contribution abroad, please attach a statement of the contribution status of the foreign country.
- The beneficiary/holder
- The legal representative of the beneficiary
You can apply for an old-age pension at any time after you reach the minimum age set for access to the old-age pension (currently 60).
The application may be submitted up to 3 months before the date on which the beneficiary wishes to report the start of the pension.
There is no maximum deadline for submitting the application.
The old-age pension is payable from the date of submission of the application, provided that the conditions for access are met, or, in situations where the application is submitted in advance, from the date the beneficiary indicates for the pension to start.
- In person at social security centres in Dili, in the municipalities and in RAEOA.
Or
- In person at the Consulates or Embassies of Timor-Leste abroad
Or
- By email to seguranca.socialtl@gmail.com (the application sent via email must be duly completed, signed and contain all attachments - application and scanned attachments)
Or
- Online (under construction)
The monthly amount of the old-age pension is calculated using the following formula:
P = R x N/360 |
P = Monthly Pension Amount
R = Reference earnings, which is the average of the recorded and revalorised earnings of the best 120 months of the entire contribution career.
If you have less than 120 months of contributions, the reference remuneration is defined by R/n where R is the total of the registered remunerations and n is the number of months to which they correspond.
N = Number of months with pay record (maximum of 360 months)
360 = Number of months for a full contribution career (30 years)
Payment of the old-age pension is monthly, with 13 months counted each year (including an additional month of pension in December, equivalent to the 13th month).
Minimum amount of the old-age pension:
The old-age pension has a minimum amount based on the amount of contributions made:
- 120 months of registered contributions = minimum pension equivalent to twice (2x) the social pension;
- Between 121 months and 240 months of registered contributions = minimum pension equivalent to three times (3X) the social pension;
- Between 241 months and 360 months of registered contributions = minimum pension equivalent to four times (4x) the amount of the social pension.
The guarantee of a minimum old-age pension means that, when the normal calculation of the pension results in a lower amount than the guaranteed minimum amount, the beneficiary is entitled to his or her pension plus a social supplement of the amount needed to make up the guaranteed minimum pension amount.
The old-age pension is paid monthly (13 months) for life until the beneficiary's death.
Social Security pays the old-age pension monthly on the following dates:
- If the worker claims the pension by the 15th, it will be paid on the 25th of the same month.
- If the worker claims the pension between the 16th and the end of the month, it will be paid the following month.
The old-age pension can be accumulated with income from work.
However, if pensioners who are still in active employment are employed by the State, payment of the old-age pension is suspended for the duration of their employment.
Old-Age Pension - Transitional Regime - Closed Group
The Old Age Pension of the transitional regime is a monthly cash pension granted to State workers (contributors) who have reached at least the minimum age legally set for access to the old age pension (currently 60 years) and who fulfil the conditions of access.
It applies to State workers (excluding contractors) who on 1 October 2017 (when the new general contributory regime came into force) met the conditions for access to the old-age pension under the transitional social security regime, but did not apply for the pension and remained in employment.
- Be a State employee and have been covered by the transitional social security regime (excludes contractors), i.e. have worked during the period of validity of the transitional social security regime (between 20 May 2002 and 30 September 2017).
- On 1 October 2017, be at least 60 years old.
- On 1 October 2017 have completed the qualifying period: 108 months of work
- Claim the old-age pension:
- Complete and submit the old-age pension application form
- Submission of a list of remuneration and length of service obtained from the competent authorities.
- The beneficiary/holder
- The legal representative of the beneficiary
- You can apply for an old-age pension at any time, with no maximum deadline for submitting it.
- The old-age pension is payable from the date of submission of the application, provided that the eligibility conditions are met.
- In person at social security centres in Dili, in the municipalities and in RAEOA.
Or
- In person at the Consulates or Embassies of Timor-Leste abroad
Or
- By email to seguranca.socialtl@gmail.com (the application sent via email must be duly completed, signed and contain all attachments - application and scanned attachments)
Or
- Online (under construction)
The monthly amount of the old-age pension is calculated using the following formula:
PV = SM x 0,75 |
PV = Monthly Old-Age Pension Amount
SM = Amount of the average salary obtained during the entire career in the transitional regime.
Payment of the old-age pension is monthly, with 13 months counted each year (including an additional month of pension in December, equivalent to the 13th month).
Minimum amount of the old-age pension:
The old-age pension has a minimum amount based on the amount of contributions made:
- 120 months of registered contributions = minimum pension equivalent to twice (2x) the social pension;
- Between 121 months and 240 months of registered contributions = minimum pension equivalent to three times (3X)the social pension;
- Between 241 months and 360 months of registered contributions = minimum pension equivalent to four times (4x) the amount of the social pension.
The guarantee of a minimum old-age pension means that, when the normal calculation of the pension results in a lower amount than the guaranteed minimum amount, the beneficiary is entitled to his or her pension plus a social supplement of the amount needed to make up the guaranteed minimum pension amount.
The old-age pension can be combined with income from work.
In situations where old-age pensions accumulate with activity/work, the beneficiary is entitled to an increase in the monthly amount of the pension, due to the fact that he or she is contributing to the contributory scheme.
However, if pensioners continue working in public sector positions, the payment of the old-age pension (and the respective monthly increase) is suspended during the period they are working.”
The old-age pension is paid monthly (13 months) for life until the beneficiary's death.
Social Security pays the old-age pension monthly on the following dates:
- If the worker claims the pension by the 15th, it will be paid on the 25th of the same month.
- If the worker claims the pension between the 16th and the end of the month, it will be paid the following month.
The old-age pension can be accumulated with income from work. However, if pensioners who are still in active employment are employed by the State, payment of the old-age pension is suspended for the duration of their employment.
Old-Age Pension - Integration Of The Transitional Regime Into The General Contributory Regime
The Old Age Pension of the general contributory regime is a monthly cash pension granted to workers (contributors) who have reached at least the minimum age legally set for access to the old age pension (currently 60 years) and who fulfil the conditions of access.
It applies to workers who have worked in the State and have completed working time during the period when only the transitional regime was in force (from 20 May 2002 until 30 September 2017) and during the period when the general contributory regime was in force (from 1 October 2017).
The calculation of the old-age pension takes into account the time and earnings during those two periods.
- Be a State employee and have been covered by the transitional social security regime (excludes contractors), i.e. have completed some working time during the period of the transitional social security regime (between 20 May 2002 and 30 September 2017).
- Be enrolled in the Contributory Social Security Regime
- You are aged 60 or over, the legal age for access to the old-age pension: currently 60 years old
- Comply with the qualifying period:
- What is the qualifying period:
- 60 months (5 years) of contributions (from 2017 to 2022)
- 66 months (5.5 years) of contributions (in 2023)
- 72 months (6 years) From contributions (in 2024)
- 78 months (6.5 years) of contributions (in 2025)
- 84 months (7 years) of contributions (in 2026)
- 90 months (7.5 years) of contributions (in 2027)
- 96 months (8 years) of contributions (in 2028)
- 102 months (8.5 years) of contributions (in 2029)
- 108 months (9 years) of contributions (in 2030)
- 114 months (9.5 years) of contributions (in 2031)
- 120 months (10 years) of contributions (from 2032)
- How the qualifying period is calculated:
- The qualifying period includes:
- the periods of contribution in the general social security system of Timor-Leste
- the period worked during the transitional social security regime (only for State workers)
- periods of contribution to social security regimes abroad, covered under international agreements, provided that they do not overlap
- the days on which employees received parental benefits.
- The qualifying period includes:
- What is the qualifying period:
- Claim the old-age pension:
- Complete and submit the old-age pension application form
- Submission of a list of remuneration and length of service obtained from the competent authorities.
- If there is a period of contribution abroad, please attach a statement of the contribution status of the foreign country.
- The beneficiary/holder
- The legal representative of the beneficiary
You can apply for an old-age pension at any time after you reach the minimum age set for access to the old-age pension (currently 60).
The application may be submitted up to 3 months before the date on which the beneficiary wishes to report the start of the pension.
There is no maximum deadline for submitting the application.
The old-age pension is payable from the date of submission of the application, provided that the conditions for access are met, or, in situations where the application is submitted in advance, from the date the beneficiary indicates for starting the pension.
- In person at social security centres in Dili, in the municipalities and in RAEOA.
Or
- In person at the Consulates or Embassies of Timor-Leste abroad
Or
- By email to seguranca.socialtl@gmail.com (the application sent via email must be duly completed, signed and contain all attachments - application and scanned attachments)
Or
- Online (under construction)
The calculation of the monthly amount of the old-age pension of beneficiaries of the transitional social security regime who are members of the general contributory social security regime is different depending on whether or not the beneficiaries have completed the qualifying period for access to the old-age pension under the transitional regime (108 months).
1. FOR BENEFICIARIES WHO HAVE MET THE QUALIFYING PERIOD FOR ACCESS TO THE OLD-AGE PENSION UNDER THE TRANSITIONAL REGIME
The monthly amount of the old-age pension is calculated using the following formula:
Pf = P + F P = P1 x Y1 x Z + P2 x Y2 F = P2 x 0,35% x N2 |
Pf = Monthly Final Pension Amount (capped at R)
P = Monthly amount of the unified statutory pension, resulting from work completed under the transitional regime and the general regime.
P1 = Portion of the pension corresponding to the time worked in the transitional regime (until 1 October 2017), calculated taking into account the calculation formula of the transitional regime: P1 = MW x 0.75; where MW is the amount of the average salary obtained during the time worked in the transitional regime.
P2 = Portion of the pension corresponding to the period with a record of earnings in the general contributory regime (from 1 October 2017), calculated taking into account the calculation formula of the general regime, accounting for the entire career (N = N1 which is working time in the transitional regime + N2 which is the time with a record of earnings in the general regime; maximum limit of N is 360 months, corresponding to a complete career) and the reference remuneration of the general regime (R, which results from the average of the total remuneration recorded and revalorised of the best 120 months of the contributory career in the general regime): P2 = R x N/360
Y1 = Weighting for the time worked in the transitional regime (N1), in relation to the beneficiary's total career (N=N1+N2): Y1= N1/N1+N2
Z = Weighting of the time worked under the transitional regime (N1) in relation to the maximum possible time worked under that regime (173 months): Z=N1/173
Y2 = Weighting for the time worked in the general contributory regime (N2), in relation to the beneficiary's total career (N=N1+N2): Y2= N2/N1+N2
F = Compensation factor, which allows the contribution effort to be amountd monthly: F = P2 x 0.35% x N2
If you have less than 120 months of contributions, the reference remuneration R is defined by R/n where R is the total of the registered remunerations and n is the number of months to which they correspond.
Payment of the old-age pension is monthly, with 13 months counted each year (including an additional month of pension in December, equivalent to the 13th month).
Minimum amount of the old-age pension:
The old-age pension has a minimum amount based on the amount of contributions made:
- 120 months of registered contributions = minimum pension equivalent to twice (2x) the social pension;
- Between 121 months and 240 months of registered contributions = minimum pension equivalent to three times (3X)the social pension;
- Between 241 months and 360 months of registered contributions = minimum pension equivalent to four times (4x) the social pension.
The guarantee of a minimum old-age pension means that, when the normal calculation of the pension results in a lower amount than the guaranteed minimum amount, the beneficiary is entitled to his or her pension plus a social supplement of the amount needed to make up the guaranteed minimum pension amount.
2. FOR BENEFICIARIES WHO DID NOT FULFIL THE QUALIFYING PERIOD FOR ACCESS TO THE OLD-AGE PENSION UNDER THE TRANSITIONAL REGIME
The monthly amount of the old-age pension is calculated using the following formula:
P3 = Rt x N/360 |
P3 = Monthly Pension Amount (ceiling equivalent to the Rt amount)
Rt = Reference Remuneration, which is the average of the total recorded and revalorised remuneration of the best 120 months of the entire contributory career, including the career in the transitional regime and the career in the general regime.
If you have less than 120 months of contributions, the reference remuneration is defined by Rt/n where Rt is the total of the registered remunerations and n is the number of months to which they correspond.
N = Number of months of total career, including transitional and general regime (maximum of 360 months).
360 = Number of months for a full contributory career (30 years)
Payment of the old-age pension is monthly, with 13 months counted each year (including an additional month of pension in December, equivalent to the 13th month).
Minimum amount of the old-age pension:
The old-age pension has a minimum amount based on the amount of contributions made:
- 120 months of registered contributions = minimum pension equivalent to twice (2x) the social pension;
- Between 121 months and 240 months of registered contributions = minimum pension equivalent to three times (3X)the social pension;
- Between 241 months and 360 months of registered contributions = minimum pension equivalent to four times (4x) the social pension.
The guarantee of a minimum old-age pension means that, when the normal calculation of the pension results in a lower amount than the guaranteed minimum amount, the beneficiary is entitled to his or her pension plus a social supplement of the amount needed to make up the guaranteed minimum pension amount.
The old-age pension is paid monthly (13 months) for life until the beneficiary's death.
Social Security pays the old-age pension monthly on the following dates:
- If the worker claims the pension by the 15th, it will be paid on the 25th of the same month.
- If the worker claims the pension between the 16th and the end of the month, it will be paid the following month.
The old-age pension can be accumulated with income from work. However, if pensioners who are still in active employment are employed by the State, payment of the old-age pension is suspended for the duration of their employment.