Allowances and salaries of civil servants to be reduced from 1Oct

Saturday, September 26th, 2009

Finance ministry and Civil Service Commission (CSC) of Maldives have reached a decision on cutting down the salaries of civil servants. In this regard, effective from 1 October, all civil servants salaries will be reduced at an average of 12.5 percent and top end civil service salaries will be reduced by 10- 20 percent.

A statement issued by finance ministry on Thursday stated salaries and allowances of government employees and civil servants will remain reduced until the present economic situation improves.

The statement read that civil servants categorized as support service staff will receive 10 percent lower salaries and those civil servants above support service category up to the top category, will be provided 15 percent less salaries and allowances. The statement also states that Permanent Secretaries and civil services positions at deputy minister levels are to be provided 20 percent less salaries and allowances.

According to finance ministry, in addition to salaries of civil servants, salaries and allowances of political appointees and salaries and allowances of independent institutions will be reduced by 10 – 20 percent.

The finance ministry statement further stated that salaries of civil servants are being reduced under privileges and powers provided by Article 43 (C) of the Civil Service Act, and under clause (D) of the same article and the salaries are being reduced on condition that salaries be increased to previous levels once the economic situation improves and economic situation of the country is to be reviewed every 3 months.

Meanwhile, CSC also has issued a statement on the imminent pay cuts.CSC said following the government’s proposal to reduce the salaries of civil servants and after due deliberations, the commission has decided to lower the salaries and allowances of civil servants for three months effective from 1 of October.

The commission expressed that it will consider the present economic situation solved once the government starts earning over seven billion rufiyaa per year.
Finance ministry also revealed due to the current economic hardships, certain subsidies provided by the government will also be stopped. In his regard, the government has announced plans to revise electricity tariff effective from first of November this year and stop providing government subsidy to STELCO and Utility Companies managed power houses in the islands. However, government has announced plans to provide support to people facing difficulty in making payments for electricity and water bills. In this regard, finance ministry is currently conducting a survey to find out such people.

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