Gov’t Highlights Impact of Salary Revisions on State Expenditure

Finance Minister Dr Mohamed Shafeeq addressed the increase in state spending on remuneration, attributing it to recent salary adjustments. 

His remarks were made in response to a query from Hanimaadhoo MP Abdul Ghafoor Moosa during the Public Accounts Committee meeting, yesterday.

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Dr Shafeeq explained that salary increments, initiated last year, are the primary reason for the observed rise in remuneration costs.

“The salary changes implemented in May last year have benefited over 46 percent of government institution employees, including those in the education, health, police, and MNDF sectors,” stated Dr Shafeeq. “Addressing pay inequality requires a comprehensive revision of everyone’s salaries.”

The Finance Minister also announced plans to begin pay harmonisation efforts for government employees as soon as possible.

This year’s budget allocates MVR 12 billion for salaries, representing 25 percent of the total budget. To date, MVR 5.4 billion has been spent on salaries, with the education sector receiving the largest portion.

Additionally, MVR 500 million is earmarked for pay harmonisation in the current budget. Initial efforts to harmonise pay began in 2022, with the Finance Ministry aiming to complete this initiative by 2026.