In a statement posted on X today (23), President of the Maldives Dr Mohamed Muizzu announced a series of measures aimed at reducing government spending as part of the upcoming 2025 budget and the broader economic reform agenda.
These changes will be implemented over a two-year period, targeting various sectors of public service and government-related positions, he said.
Key measures include:
- Salary Deductions for Political Positions: A 10% salary deduction will apply to individuals in political roles.
- Government-Owned Companies: Employees of government-owned companies, excluding banks, will also face a 10% salary cut, with a maximum salary cap set at Rs 90,000. This measure addresses concerns regarding companies with salary structures exceeding Rs 100,000.
- Independent Institutions: Heads of independent institutions will see a similar 10% reduction in their salaries.
- Judicial Officials and Parliament Members: The President has requested that judicial officials and members of Parliament contribute to the reform by accepting a 10% salary deduction.
Importantly, individuals earning below Rs 12,000 will be exempt from these deductions. Additionally, the President stated that he will not have a 50% deduction from his own salary as part of this initiative.
The President said that these measures aim to streamline government expenditure while ensuring that the financial burden does not disproportionately affect lower-income earners in the Maldives.
