Minister of Finance Dr Mohamed Shafeeq has said today that the increase in State's spending on remuneration is seen due to the changes brought to salaries.
Minister of Finance Dr Mohamed Shafeeq has said today that the increase in State's spending on remuneration is seen due to the changes brought to salaries.
The Minister said this in response to a question posed by Hanimaadhoo MP Abdul Ghafoor Moosa in today's meeting of the parliament's Public Accounts Committee.
The Minister said that increments to salaries had been given beginning from last year, which explains the spike in spending on remunerations.
Shafeeq said that with the changes brought to the salaries of teachers, health sector workers, police and MNDF, now 46 percent of those in government institutions has been provided with a raise.
"The changes to salaries were implemented in May last year. About 46 percent of the entire population has received increments. Pay inequality can be resolved through revising everyone's salaries," he said.
Shafeeq said that efforts will commence at the earliest possible on pay harmonization amongst government employees.
In this year's budget, MVR 12 billion is allocated for salaries. This amounts to 25 percent of the budget. As of now, MVR 5.4 billion has been spent on salaries, the largest fraction of which goes to those in the education sector.
The year's budget also has an allocation of MVR 500 million for pay harmonization. Efforts to achieve this were first begun in 2022. The Finance Ministry aims to complete these efforts by 2026.
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