Finance Minister Moosa Zameer announced on Monday that employees in professional and technical sectors within State-Owned Enterprises (SOEs) will not face salary reductions amid broader cost-cutting measures. Speaking before the parliamentary finance committee, Zameer emphasised the importance of retaining highly skilled workers, such as engineers and pilots, by safeguarding their salaries.
When questioned about potential salary cuts for pilots and engineers, Zameer confirmed that these employees would be exempt from the proposed 10% salary reduction. He highlighted that these sectors hold strategic value and require special consideration to prevent the loss of essential talent.
“If salaries decrease, such employees may seek opportunities elsewhere. It is crucial to retain professionals like engineers, so we will not reduce their salaries,” Zameer stated.
Additionally, the government has established a salary cap, ensuring that no SOE employee earns more than MVR 90,000. This initiative aims to protect lower-income earners while maintaining a structured pay scale.
Zameer outlined plans to transform government-dependent companies into self-sustaining entities. The transition involves setting performance targets for companies to achieve financial independence, particularly in covering recurrent expenditures such as salaries. The objective is to reduce excessive reliance on government funding and enable companies to manage day-to-day costs autonomously.
“Very soon, the targets we are setting will have to come from the managements of the companies. If the company is funded by the government, it is running as a government department,” Zameer added.
He noted that the government intends to fund only capital expenses, in line with the President’s directive, leaving companies responsible for their operating costs.
Reflecting on past challenges, Zameer mentioned that some companies have faced rising debts and unsustainable operations. In response, he outlined specific measures designed to improve corporate governance practices.
One of the initiatives includes establishing a centralised procurement system to streamline and regulate spending across corporate entities. Additionally, companies will be required to appoint chartered accountants and conduct regular audits to ensure better fiscal responsibility and transparency. Zameer also revealed ongoing work with the Audit Office to draft new legislation aimed at reinforcing accountability and establishing a standardised governance framework for government-backed corporations.
