State owned companies instructed to restructure wages

Finance Minister Ibrahim Ameer has instructed state-owned companies to reduce the wages of employees who receive MVR 15,000 or higher.

In a circular issued to the companies by the Ministry, it was instructed upon the companies to form a guideline on how wages are to be restructured in addition to policies on revising and reducing the wages of employees. The guidelines are to be sent to the Finance Ministry by May 5.

Under the policy, wages are to be reduced from employees earning more than MVR 15,000 while employees earning less than the amount will not see any changes brought to their salary structure.

However, despite the wage cuts, the salaries of the higher-earning employees will still be more than those earning less, according to the circular.

The policy is a result of the economic impact of COVID-19 on the country that has left the economy stagnated.

The Finance Ministry has previously noted that the cash flow of companies was reduced and that the government was forced to depend upon the working capital. The Minister has stressed the importance of cutting down on costs until the economic situation of the country returned back to normal.