The Privatisation and Corporatisation Board (PCB) has announced that the maximum salary and allowances for the heads of government-owned companies will be capped at USD 5,837 per month for the next two years.
A circular issued by PCM on Thursday stated that this measure, aimed at reducing state expenditure, applies to all state-owned companies except banks. However, technical employees at these companies are exempt from the salary cap.
PCB said the decision to limit the maximum salary was made by President Dr Mohamed Muizzu, and has been in effect since 1 January this year.
According to PCB, foreign directors of companies are also exempt from this rule. If the salaries and allowances of non-technical employees exceed USD 5,837 per month, the excess amount must be deducted from their earnings. The PCB has instructed companies to revise their employee agreements accordingly.
In October last year, the President implemented a 10 percent deduction for the heads of government companies, political employees, heads of the three branches of the government, heads of independent institutions, and members of the Parliament for a period of two years. Additionally, he also decided to forgo 50 percent of his own salary.
While the government conies efforts to reduce government expenditure, the government earlier removed 228 political appointees, saving USD 369,776 monthly.