Finance Minister Ibrahim Ameer says the government plans to cap and cut employee salaries with the country’s economy facing a crunch amid the Covid-19 crisis.
Speaking to the media via an online news conference, Finance Minister said that this change was brought about with no improvement in state finances and the economic situation expected to worsen.
Ameer said the salaries of all employees on government payroll would be affected by this change.
Employees who would be exempted from the salary reduction include health sector workers, Permanent secretaries at ministries, consultants, employees working for contracts, and heads of different commissions.
Minister Ameer said individuals receiving salaries between MRF 20,000 and MRF 25,000 would face a pay cut of 20 percent. He said for those employees receiving basic salaries between MRF 25,000 and MRF 60,000. 30 percent of their salaries would be slashed.
He added that for those receiving salaries higher than this would face a salary cut of 35 percent.
Minister Ameer said once the cap comes into effect, take-home pay for all government staff would be reduced.
