Public sector heads to take 32 percent pay cut

Heads of government companies will be taking a 32 percent pay cut amid the current COVID-19 pandemic.

Speaking during the National Emergency Operation Centre (NEOC)'s daily press briefing on Thursday, Finance Minister Ibrahim Ameer said the state revenue is expected to decline further in the upcoming days and additional changes are being brought to the government salary structures to mitigate losses.

In this regard, board allowances will be suspended and salaries of Managing Directors and Deputy Managing Directors of state-owned companies will be decreased by 20 percent. This adds up to a 32 percent pay cut for public sector heads, said the minister.

The minister further said while the government previously decided to impose a 20 percent pay cut for political posts within the government, the percentage will now be increased further.

The government has also decided to cut the salaries of government employees earning between MVR 20,000 and 25,000 by 20 percent, and a 35 percent cut for those earning between MVR 30,000 and 60,000. Salaries of those earning below these figures will be capped at MVR 25,000, said the minister.