Ministry of Finance has instructed the state owned companies to submit restructured salary policies with pay cuts.
In a circular by the Ministry, the companies are advised to focus on 3 factors while developing the new policies.
- Salary cuts are only applicable for monthly salaries above MVR 15,000, while employees earning less than the amount will not see any changes brought to their salary structure.
- Finance Ministry also stated that the companies should maintain a progressive reduction rate with new policies.
- The new policy should also be in line with the existing policies of the company.
The companies are required to submit their new salary policies by 5th May. However, the new policy will implemented only after the Ministry’s approval.
An official from the Ministry highlighted that this restructure is to have a better understanding of the companies and that a salary cut has not been put into place yet.
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