The government has decided to reduce the board allowance provided for senior officials at state companies and slash their salaries by 32%, as part of the government’s cost-cutting measures amid the Covid-19 pandemic.

Speaking to press during Thursday afternoon’s press briefing at the National Emergency Operations Center (NEOC), the Minister of Finance, Ibrahim Ameer revealed that the government has decided to reduce salaries of Managing Directors and Deputy Managing Directors at state institutions and companies, by 32%.

Although the government had decided to reduce the salaries of senior officials by 20%, it has since been increased to 22%. Further, board allowances of MVR 11,500 given to them, will also be reduced for these employees.

The government will be publicizing a circular announcing these changes.

Several cost-cutting measures have been implemented by the government since the pandemic took a hit on the country’s economy, this includes restricting travel to foreign countries funded by the company’s budget and issuing a protocol that must be followed when arranging trips for senior officials of these companies.

Companies have also been instructed by the Finance Ministry to reduce extra costs such as installation of carpets and partition walls at their establishments, temporarily.