SOEs ordered to cap pay to slash public spending
The Privatization and Corporatization Board has ordered state enterprises to adopt the most cost-effective overtime policies to improve financial discipline. All entities must update internal procedures by July 30 for full enforcement starting August 1. These mandatory measures aim to standardize payment structures and reduce operational costs.
An MPL employee works at the Male' Commercial Port to expedite the clearance of perishable food items during a public holiday. | MPL
State-Owned Enterprises (SOEs) and their subsidiaries have been directed by the Privatization and Corporatization Board (PCB) to issue overtime compensation strictly for hours completed beyond a 48-hour weekly threshold.
In addition to this, organizations that already enforce a limit on overtime earnings must evaluate their current regulations against the newly issued guideline.
Entities are required to enact whichever policy proves more economically beneficial and budget-friendly for the enterprise.
All affected companies must update their internal operating procedures by July 30, with full enforcement slated to begin on August 1.
According to an official notice published on July 21 and bearing the signature of PCB President Mohamed Nizar, adherence to the board's instructions is compulsory for every state enterprise and public commercial entity.
The directive explained that these measures are intended to establish uniformity in overtime payment structures throughout state organizations, bolster corporate management standards, and foster financial discipline through the reduction of running costs.
