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Pay cuts approved for parliament-set salaries

Fathmath Shaahunaz
21 May 2020, MVT 12:35
A nearly empty parliament chamber, during a virtual sitting held amid the COVID-19 pandemic. FILE PHOTO/MIHAARU
Fathmath Shaahunaz
21 May 2020, MVT 12:35

The parliament on Wednesday approved salary reductions for high-ranking posts, including that of the president, to be implemented for a period of three months in order to offset the fiscal repercussions of the COVID-19 pandemic.

The Public Accounts Committee's report on its evaluation of the state-lobbied bill, to slash the remunerations determined by the parliament, was passed unanimously by the 64 lawmakers present at the sitting.

Per the approved report, pay deductions on brackets above MVR 20,000 for salaries determined by the parliament, will be imposed as follows:

- Basic salary less than MVR 20,000: 0 percent deduction

- Basic salary MVR 20,001 - MVR 30,000: 20 percent deduction

- Basic salary MVR 30,001 - MVR 60,000: 30 percent deduction

- Basic salary exceeding MVR 60,001: 35 percent deduction

With this development, the president's current monthly remuneration of MVR 100,000 will be reduced to MVR 65,000 for the next three months.

Members of the parliament will see a salary reduction from MVR 60,000 to MVR 42,000. However, lawmakers on committees will take home total MVR 69,750 with committee allowance.

As these policy changes would also result in some lower-ranking judges and magistrates taking home higher pay than some justices of superior courts, the committee's approved report included set deductions for certain lower court judges as well:

- MVR 7,100 deduction for Chief Judge, MVR 6,300 deduction for other judges of the Criminal Court

- MVR 8,600 deduction for Chief Judge, MVR 7,800 deduction for other judges of the Drug Court

In addition to the president, members of the parliament and the judiciary, these salary reductions also apply to members of independent institutions.

The newly approved pay cuts were mostly in line with the original proposals in the government's bill.

The administration has also implemented similar pay reductions, as well as salary ceilings, across government staff and political appointees. These changes will be in effect May onwards.

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