President Dr Mohamed Muizzu has submitted a letter to parliament, seeking their consultation on a proposal to reduce the salaries of officials within independent institutions, the judiciary, and parliament members. This proposal is part of the administration's economic reform and austerity measures aimed at reducing public expenditure, budget deficits, and national debt.
The proposal specifies that the salary reductions for officials within independent institutions, the judiciary, and Parliament members will be implemented for a period of two years. This measure is intended to curb public spending and support the administration’s broader economic reform agenda.
In his letter, President Dr Muizzu outlined that the two-year austerity plan includes a 10% reduction in the basic salaries of senior officials within independent institutions who currently earn over USD 778.34 per month. He has requested Parliament's consultation on this proposal, as well as on the implementation of similar salary reduction measures for staff within the judicial sector and parliament members. Upon receipt of the president's letter, parliament forwarded it to the Public Accounts Committee for review.
Prior to submitting the national budget for 2025 to Parliament, President Dr Muizzu announced his decision to implement stringent austerity measures as part of his economic reform agenda. These measures include a 10% reduction in the basic salaries of all political appointees and employees of state-owned companies, excluding banks. The president also decided to cap the maximum salary for heads of state-owned companies at USD 5,837.95, assuring that this decision will not affect employees who earn a monthly salary of USD 778.34 or less.