State-Owned Enterprises Ordered to Cap Directors’ Salaries at MVR 90,000

The Privatisation and Corporatisation Board (PCB) has ordered a salary cap of MVR 90,000 for the heads of state-owned enterprises (SOEs) as part of the government’s cost-cutting measures. The directive, issued through a circular on Thursday, will remain in effect for the next two years.

According to the circular, the decision follows an order from President Dr Mohamed Muizzu, who has prioritised fiscal consolidation across SOEs. The directive applies to local directors whose total remuneration, including allowances, currently exceeds MVR 90,000. However, foreign directors have been exempted from this measure.

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PCB has also mandated amendments to employment contracts to align with the salary reductions, though technical staff have been exempted from these changes. The directive will be enforced from January this year and will apply across all SOEs, excluding banks.

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