As a measure to reduce government expenditure, the Privatisation and Corporatisation Board (PCB) has announced that starting this year until the next two years, the maximum salary and benefits for senior executives of state-owned companies will be limited to MVR 90,000.
In a circular issued today, PCB said that these cost-cutting measures under the economic reform agenda will apply to all government-owned companies except banks. However, the circular also mentioned that technical staff working in these companies are not included in this limitation.
The circular detailed that the president determined the maximum amount that can be given to company executives and employees is MVR 90,000. This will be implemented for the next two years starting from the first day of this month, the statement said.
However, foreign directors in these companies will be exempt from this rule, according to the circular.
According to the circular, if the salary and benefits of employees other than technical staff in government-owned companies exceed MVR 90,000, the excess amount must be deducted. PCB also instructed to make necessary changes to the the employment agreements made with the employees.
In addition to state-owned companies President Dr. Mohamed Muizzu decided last October to cut 10 percent of the salaries of political staff, senior officials of the three branches of government, heads of independent institutions, and members of parliament for a period of two years, in efforts to curb government expenditure.
Following this decision, he also decided to forgo 50 percent of his own salary. As a result, the president should now receive a salary of MVR 50,000.
The government previously said that it would take many measures to reduce state expenditure due to the increase in national debt and the decline in the country's economic situation.
Under the cost-cutting policy, the President also decided to dismiss 228 employees currently in political positions. He stated that this decision would save the state MVR 5.7 million per month. However, the government has not disclosed information about the individuals who were dismissed.