Minister of Finance Moosa Zameer has stated that while the salaries of employees in government-owned companies are subject to a 10% reduction, professionals in these roles will be exempt. He made this statement during an address to the Public Accounts Committee of Parliament concerning measures implemented to reduce government expenditure.
This decision follows a directive from President Dr. Mohamed Muizzu, who ordered a 10% salary deduction for employees earning above USD 781.79, excluding those in the civil service. The reduction will affect political employees, senior officials across the three branches of government, heads of independent institutions, members of Parliament, and employees of government companies for a period of two years.
Concerns have been voiced on social media by pilots and engineers regarding the potential impact of these salary cuts. In response, Finance Minister Zameer emphasized that, although some salaries will be reduced to achieve government savings, specific professional employees will not be included in these cuts. He noted that professionals in various sectors have alternative employment opportunities, which influenced the decision.
In his remarks to the committee, Minister Zameer reaffirmed the government's commitment to financial reform, including efforts to establish a new operational framework for government-owned companies, distinct from the existing Companies Act. He stressed the importance of these companies working toward independence from state reliance and having clear performance targets.
Furthermore, the government is implementing comprehensive measures to curtail state spending, which includes salary reductions for government officials, including the President, as well as proposals to decrease salaries for members of Parliament and the judiciary.