Govt. releases details on deductions to public servants’ pay

Finance Ministry, on Saturday, released a circular detailing changes to the salary of public servants as a cost cutting measure in face of the COVID-19 pandemic.

The changes are effective from the salary period this May to until the Finance Ministry states otherwise.

The basic salary of those who hold deputy minister level positions and above will be deducted by 20 percent, even if they earn a basic salary below MVR 20,000. And the salary of political appointees who earn a basic salary above MVR 20,000 will be deducted in accordance with the standards declared by the Finance Ministry in its circular.

SALARY BRACKETS AND CORRESPONDING DEDUCTIONS:

• MVR 20,000 and below: No deduction
• MVR 20,001-MVR 30,000: 20 percent
• MVR 30,001-MVR 60,000: 30 percent
• MVR 65,001 and above: 35 percent

The Finance Ministry has also declared caps on the net salary of public servants.

• Public servants exempt from the salary deductions are:
• National Disaster Management Authority (NDMA) employees
• Health Protection Agency (HPA) employees
• Employees of health centers and hospitals except for presidential appointees
• Maldives Police Service employees
• Maldives National Defense Force (MNDF) employees
• Representatives of institutions who work at the National Emergency Operations Center for more than six-hour shifts

The special allowance paid by the President for frontline workers and their support workers will not be included when calculating caps on the net salary. And no caps will be imposed on the net salary of employees of Maldivian diplomatic missions overseas.

As had been previously decided, offices may not hire new employees, even to replace employees who resign, without express permission from Finance Ministry.

Offices have been instructed not to introduce a new allowance, and to pay overtime for over 48 hours of work per week in accordance with the Employment Act.

Offices have also been instructed not to provide benefits outside of the salary and allowances (such as insurance) or grant extensions without permission from Finance Ministry. Pension and overtime must be calculated based of the deducted basic salary where applicable.