President Dr Mohamed Muizzu has announced plans to reduce salaries for political appointees and employees of government-owned companies as part of an economic reform agenda when the 2025 budget is presented. The announcement was made via a post on X, formerly known as Twitter, on Wednesday.
Under the proposed measures, which will be implemented over two years, a 10% reduction will be applied to the salaries of those in political positions, as well as employees of government-owned companies. Additionally, the salary of CEOs at state-owned enterprises (SOEs) will be capped at MVR 90,000 per month. Currently, some SOE executives earn more than MVR 100,000. A 10% salary cut will also affect the heads of independent institutions.
The President also revealed that the government will request a similar 10% salary reduction for members of Parliament and judicial officials, though this would require parliamentary approval.
However, employees earning less than MVR 12,000 per month will be exempt from these cuts.
President Muizzu further announced he will forego 50% of his own salary during this period.
Financial institutions have raised concerns over the government’s increased spending, despite record revenue collection this year. The government is also preparing to submit a supplementary budget to Parliament after struggling to manage the 2024 budget.
The 2025 budget is expected to outline additional measures aimed at reducing government expenditure as part of broader fiscal reforms.