Gov't to assess whether state institutions have excess staff

Finance Minister Hassan Zareer says the government is considering conducting an HR audit next year to determine whether state institutions have the number of employees they actually need and to identify staffing requirements.

Responding to a question from a member of Parliament's Budget Committee on Monday, Zareer said President Dr. Mohamed Muizzu had decided that no new positions would be created next year, with recruitment to be limited to essential posts.

“We have also engaged both the Finance Ministry and the Pay Commission to determine whether government institutions have adequate staffing, and have considered conducting an HR audit to ensure employees are allocated where they are needed and directed to the appropriate areas,” Zareer said.

The government has proposed a budget of MVR 59.7 billion for next year.

According to the budget book, MVR 7.91 billion is expected to be spent on salaries next year, while a further MVR 6.51 billion has been allocated for employee allowances and benefits. As such, total expenditure on government employees is projected to reach MVR 14.4 billion.

The figure is MVR 492.8 million higher than the amount budgeted for employee-related expenses this year.

President Muizzu said late last month that the government's efforts to reduce expenditure would be reflected in next year's state budget.

Concerns have long been raised regarding the size of the public sector workforce in the Maldives, particularly amid allegations that some state-owned enterprises employ more staff than required.

According to 2023 figures published by the Maldives Bureau of Statistics, the civil service workforce stood at 30,127 employees. Zareer stated in August that the number of employees working at state-owned enterprises exceeds 41,000.

Notably, President Muizzu came to office pledging to keep the number of political appointees below 700. However, the number of political appointees later increased, and in April the government ordered a 33 percent reduction in the workforce of state-owned enterprises as part of cost-cutting measures.