Companies ordered to slash executives' salaries to MVR 90,000
The president has also announced that he has directed to arrange for him not to take 50 percent of his salary
The Privatization and Corporatization Board (PCB) building
The Privatization and Corporatization Board (PCB) has ordered state-owned companies, except for banks, to reduce the salaries of their top executives to MVR 90,000.
The instruction was given on Thursday.
PCB issued the directive in a circular regarding salaries and benefits of state-owned companies.
According to the circular, these are measures decided by President Dr. Mohamed Muizzu, to be implemented over the next two years regarding salaries, as part of the government's economic and reform agenda to reduce state expenditure.
As such, directors whose salaries and benefits exceed MVR 90,000 have been instructed to have their salaries and benefits adjusted to not exceed MVR 90,000. However, foreign directors are exempt from these measures.
For employees other than technical staff whose salaries exceed MVR 90,000, the excess amount should be deducted as a reduction, and salaries and benefits should be given so as not to exceed MVR 90,000. Companies have also been instructed to make necessary changes to legal agreements made with employees in relation to this.
Therefore, PCB has requested state-owned companies with majority government shares, except for banks, to implement this for a period of two years starting January 2025.
While PCB has given this instruction to companies, the president has also announced that he has directed to arrange for him not to take 50 percent of his salary. This needs to be done by submitting a proposal to the People's Majlis. RaajjeMV understands that such a proposal has not been submitted to the People’s Majlis, yet.
