The Parliament on Wednesday approved a 20 per cent pay cut on the salaries of parliamentarians to mitigate the losses caused to the country's economy due to the COVID-19 pandemic.
The move was suggested by the parliamentary group of main-ruling Maldivian Democratic Party (MDP), which holds parliament supermajority. The request was submitted at the Public Finance Committee of the Parliament through Speaker Mohamed Nasheed. The request also proposed pay cuts on the salaries of senior government officials.
According to the motion, the pay cut will also apply to the president, vice president, judges, and members of independent commissions. The paycut will be effective for two months during March and April, and the salaries will be subject to review every month after that.
The committee approved the motion, and a vote was taken on the matter during Wednesday's sitting. The motion was passed with the votes of 74 members. No members voted against the motion.
Parliamentarians currently receive a monthly salary of MVR 42,500. When the 20 per cent pay cut is applied, the monthly salary of MPs will decrease to MVR 30,000 per month. The pay cut will save almost MVR 1.5 million for the state.
13 people have tested positive for COVID-19 in the Maldives thus far. All are foriegn nationals either holidaying or working in the Maldives. While it is expected that the tourism industry of the Maldives will be severely affected as a result of the pandemic, the Maldives is now facing a serious decline in government revenue, estimated to be at almost US$ 400 million. The government has therefore decided to reduce government spending by MVR 1 billion as a precautionary measure to compensate for projected economic issues as a fallout from the COVID-19 pandemic.
