DILI (TOP) - The Court of Appeal of Timor-Leste has ruled, in a judgment dated today, that former holders of sovereign bodies, former member of parliament as well as former members of the Government will no longer receive the monthly lifetime pension and other associated benefits, under Law No. 7/2025, of September 29.
However, the Court considered unconstitutional the provision that provided for the immediate termination of these benefits without any compensation.
In September 2025, Timor-Leste’s Parliament passed Draft Law 11/VI (3rd) to eliminate lifetime pensions and related perks (vehicles, housing) for high-ranking officials, including the President and MPs. The law is retroactive to 2002 but does not require repayment of past benefits, aiming to uphold equality and protect public funds
The judgment, delivered by judges Jacinta Correia da Costa (rapporteur), Duarte Tilman Soares and António Helder do Carmo, declares unconstitutional, for violating the principle of equality enshrined in Article 16, No. 1, of the Constitution of the Democratic Republic of Timor-Leste, the part of No. 3 of Article 5 of Law No. 7/2025 that stipulated that no compensation was due for the termination of contracts or benefits.
In its reasoning, the Court emphasizes that the immediate termination without any compensation or reasonable transition constitutes an arbitrary measure that disregards contractual principles and the right to equality.
Thus, although the revocation of the lifetime pension and other benefits (such as official residence, service vehicles, driver, escort, and other logistical support) remains in effect, beneficiaries must be guaranteed adequate compensation, in accordance with the applicable regime and constitutional principles.
This decision follows the approval by the National Parliament of Law No. 7/2025, which retroactively revoked the legal provisions that granted lifetime pensions and other privileges to former holders of sovereign bodies.
The law was enacted by the President of the Republic on September 29, 2025, after strong pressure from civil society and students, who demanded an end to benefits considered unequal and unsustainable to the public treasury.
With this ruling, the Court of Appeal balances the legislative will to eliminate lifetime privileges with the need to respect fundamental rights and the principle of proportionality. Pension payments cease, but former beneficiaries will be entitled to compensation that the legislature or the Government must now define in a fair and reasonable manner.
The ruling also mandates notification and publication in the Official Gazette of the Union, pursuant to Article 153 of the Federal Constitution.
This decision represents an important milestone in the consolidation of the rule of law in Timor-Leste, reinforcing that the fight against inequalities cannot violate the constitutional principles of equity and the protection of acquired rights in a disproportionate manner.
