The Maldivian government has recently proposed a 10% salary reduction for senior officials and political appointees to address economic constraints. However, Finance Minister Moosa Zameer clarified that employees in essential professional roles, including engineers and other skilled positions, will be exempt from these cuts. This decision aims to retain critical talent amidst efforts to curb state expenses.
Key Highlights of the 10% Salary Deduction Policy
Last week, President Dr. Mohamed Muizzu introduced a broad salary reduction plan as a response to current financial pressures. The initiative impacts a range of senior-level employees, including:
- Political appointees and senior government officials – All political appointees across various government branches will experience a 10% salary reduction.
- SOE executives and staff – Employees of State-Owned Enterprises (SOEs), except those working in banking institutions, are included in the measure, with management salaries capped at MVR 90,000.
- Independent institution leaders – Senior officials in institutions such as the Anti-Corruption Commission and the Auditor General's Office will also have their salaries reduced by 10%.
- Judiciary and parliament members – Members of parliament and the judiciary, along with other high-ranking officials, will see similar salary deductions.
Exemption for Essential Professionals
During a recent meeting of the Supplementary Budget Review Committee, Minister Zameer addressed questions from Members of Parliament (MPs) concerning the policy. He emphasized that skilled professionals, including engineers and other employees vital to infrastructure and essential operations, will not face salary cuts.
Salary Deduction Thresholds and Additional Exemptions
In addition to exempting skilled professionals, the government has introduced thresholds to protect lower-income workers:
- Employees earning below MVR 12,000 per month – Salaries under this amount will be safeguarded from deductions, ensuring that lower-paid staff are not impacted by these measures.
President and Speaker Lead by Example
Both President Dr. Mohamed Muizzu and Speaker of Parliament Abdul Raheem Abdulla announced they would personally accept substantial salary reductions. President Muizzu has pledged to forego 50% of his own salary, setting a tone of shared responsibility at the highest level. Likewise, Speaker Abdulla opted to reduce his salary by 50%, underscoring a unified approach toward addressing the economic challenges facing the Maldives.
