Parliament approves pay cuts on elected officials, independent appointees

The Parliament, on Wednesday, approved imposing a 20 percent pay cut on the salaries of all officials whose salaries are subject to review by the Parliament as a cost-cutting measure to mitigate the economic impact from the COVID-19 pandemic.

The pay cuts will apply to all officials who earn a basic monthly salary above 30,000 and whose salaries are subject to review by the Parliament.

It includes the President, Vice President, judges, members of independent commissions, and parliamentarians.

The pay cuts will be in effect for the two months – March and April, and is subject to a monthly review.

The decision was passed with the majority vote of 74 parliamentarians this afternoon.

The vote came within hours after the Public Accounts Committee passed a motion to in approval of imposing a 20 percent pay cut on the salaries of parliamentarians, something which had originally been suggested by the ruling Maldivian Democratic Party (MDP)’s parliamentary group on Monday, March 16; after Finance Minister Ibrahim Ameer filed a letter with the Parliament requesting a MVR 19.3 million cut in its expenditures.

Parliamentarians currently receive a monthly salary of MVR 42,500 - 20 percent of which equates to MVR 8,500. 20 percent of the monthly salary of all 87 parliamentarians equates to MVR 739,500.

Parliamentarians also receive a monthly allowance of MVR 40,000; a MVR 20,000 living allowance and a MVR 20,000 committee allowance - given based on attendance to committee meetings.

Article 272 of the Parliament’s Standing Orders says a change to the salaries and allowances of parliamentarians requires a two-third majority vote of the Parliament, as established under Article 88 (a) (ii) of the Constitution.

13 people have tested positive for COVID-19 in Maldives, all of whom are foreign nationals who were either working or vacationing in resorts or safaris. Of the 13 people, five were from Kuredu Island Resort, two from Sandies Bathala, two from Kuramathi Island Resort, two from Anantara Dhigu, and two from Island Safari-1.

In an address to the national over the COVID-19 pandemic on Thursday, President Ibrahim Mohamed Solih warned the COVID-19 pandemic was having a severe impact on the Maldivian economy – which is heavily dependent on tourism.

The government has begun implementing cost-cutting measures, but President Solih provided assurance his government had no plans to reduce the salaries of civil servants, or to suspend Public Sector Investment Program (PSIP) projects.

Some of the cost-cutting measures in place is a 20 percent cut on the salaries of all political appointees, and a MVR 1 billion reduction in government expenditure.