President Dr. Mohamed Muizzu has introduced a significant reform to reduce the salaries of top government officials and management in State-Owned Enterprises (SOEs). The move, aimed at cutting state spending, is part of a larger economic reform strategy designed to address financial challenges.
In a post shared on the social media platform X, the president detailed the upcoming changes, which will be reflected in the 2025 State Budget proposal to Parliament.
President Muizzu's economic reform plan includes several critical decisions:
10% Pay Cut for Political Appointees and SOE Leaders
One of the primary reforms is a 10% pay cut for all political appointees within the government. Top management at SOEs will face a similar reduction, with the exception of banking institutions. The president further mandated that no SOE leader should earn more than MVR 90,000 monthly.
Salary Reductions for Independent Institutions
Alongside the changes in government salaries, President Muizzu has proposed a 10% pay reduction for members of independent institutions.
President’s Own Salary Cut
Leading by example, President Muizzu announced a personal salary reduction of 50%, bringing his monthly earnings down from MVR 100,000 to MVR 50,000.
Impact on Lower-Paid Government Employees
President Muizzu reassured the public that these reductions will not impact government employees earning MVR 12,000 or less. This decision helps protect lower-income employees from any financial strain caused by the reforms, ensuring that only high-earning officials and management are affected.
Reducing Government Expenditure
Earlier this week, the president also revealed plans to dismiss 228 political appointees as part of the government’s broader efforts to cut costs. This reduction in staff is expected to save the state approximately MVR 5.7 million.
