The government has decided to reduce the wages of government employees who are earning above USD 1,290 per month.
Minister of Finance Ibrahim Ameer said the wages of all government employees earning above USD 1,290 will be reduced, including individuals at deputy minister level. As such, the minister revealed government employees earning between USD 1,290 and USD 1,613 per month will have their wages reduced by 20%, while those earning between USD 1,613 and USD 3,872 will have their wages reduced by 30%. Meanwhile, government employees earning above USD 3,872 will have their wages reduced by 35%.
The minister also revealed the maximum take-home amount including benefits and allowances for individuals whose basic wages are below USD 1,290 will be USD 1,613.
Furthermore, Minister Ameer revealed the wages of individuals working at state-owned enterprises will also undergo some changes. In this regard, the minister noted the wages of managing directors and deputy managing directors of state-owned enterprises have been reduced by 32%. He said this includes the reduction of 22% from their basic wages, while the board allowance of USD 710 has also been removed.
The finance minister said state-owned enterprises have been asked to share the modified salary structure with the finance ministry. He expressed belief the changes will be brought after discussing the matter with the employees.
Minister Ameer reiterated the pay-cut will mostly affect individuals in high-level posts of the government, rather than ordinary staff. The minister also stated the main reductions will be imposed on individuals whose basic wages are above the threshold, such as permanent secretaries of ministries and contract staff. He said the pay-cuts are being imposed to better manage the finances of the state amid the COVID-19 crisis.