President Dr. Mohamed Muizzu has announced the decision to reduce salaries provided by the government, exceeding USD 778, excluding the salaries of the civil servants.
In a social media post, President Dr. Muizzu revealed the government's decision of taking significant measures to reduce state-expenditures, under the economic reform agenda proposed as part of the 2025 state budget.
The measures, which will be in effect for a two-year period, include:
1. A salary reduction of 10 percent for all politically appointed individuals.
2. A salary reduction of 10 percent for all staff of state-owned enterprises (SOEs), excluding banks.
3. Ensuring that the take-home salaries of heads of state-owned enterprises (SOEs) will be capped at USD 5,836.
3. A proposition to relevant bodies to reduce the salaries of heads of independent institutions by 10 percent.
4. A proposition to the heads of the Judiciary and Parliament to reduce their salaries by 10 percent.
Additionally, President Dr. Muizzu assured that individuals earning less than USD 778 will be exempt from these measures.
While the government is continuing to exert several efforts to reduce state-expenses, it has decided to dismiss 228 political appointees, under the cost-cutting measures. The government stated that the action will reduce expenditures by USD 369,649 per month. Moreover, efforts are ongoing to reduce the trips undertaken by government officials and to increase the state-revenue.