Technical staff exempt from salary cuts, Zameer says
Zameer emphasised that while certain cost-cutting measures are in place, technical and professional roles will be safeguarded from salary reductions.
Finance minister Moosa Zameer said on Monday that the salaries of employees belonging to professional or technical sectors will not be reduced in the reduction of salaries of State-Owned Enterprises (SOEs).
Speaking before the parliamentary finance committee, Zameer emphasised that while certain cost-cutting measures are in place, technical and professional roles will be safeguarded from salary reductions. This strategy, he explained, is essential for retaining highly skilled workers like engineers and pilots.
Addressing the question of whether pilots and engineers would face salary cuts, Zameer confirmed that technical and professional employees would be exempt from the 10% salary reduction. He clarified that these sectors are strategically valuable and require special attention.
“If the salary goes down, such employees may go elsewhere. It will be important to keep people like engineers. So we will not cut the salaries of such professional categories,” Zameer stated.
Additionally, the government has set a baseline salary threshold with no SOE salaries exceeding MVR 90,000. This move aims to provide security to lower-income earners while maintaining a structured salary cap.
Zameer announced a focus on transforming government-dependent companies into self-sustaining entities. This transition, he explained, involves setting performance goals for companies to achieve financial independence, especially for covering recurrent expenditures like salaries. The goal is to reduce excessive reliance on government funding and ensure that companies can manage day-to-day costs autonomously.
“Very soon, the targets we are setting will have to come from the managements of the companies. If the company is funded by the government, it is running as a government department,” Zameer added.
He noted that the government aims to fund only capital expenses, as per the President’s directive, while leaving companies to manage their operating costs.
Reflecting on past challenges, Zameer remarked that some companies were poorly managed under previous administrations, resulting in rising debts and unsustainable operations. In response, he outlined specific measures designed to overhaul corporate governance practices:
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Centralised procurement system: To streamline and regulate spending, the government will establish a centralised procurement process across corporate entities.
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Mandatory chartered accountants: Companies will be required to appoint chartered accountants and maintain regular audits, ensuring better fiscal responsibility and transparency.
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Proposed legislative reforms: Zameer revealed ongoing work with the Audit Office to draft new legislation aimed at reinforcing accountability and establishing a standardised governance framework for government-backed corporations.
