This is not the time to raise salaries of state company directors: MP Saeed

Former Economic Minister and current PNC deputy leader and Maavashu MP Mohamed Saeed. | Photo: Fayaz Moosa.

Malé, Maldives – MP of Maavashu Constituency and Vice President of PNC Mohamed Saeed on Saturday, noted the irresponsibility of President Ibrahim Mohamed Solih, saying that this is not the time to raise the salaries of MD and DMDs of government companies.

The Finance Ministry on Friday raised the salary of the Managing Director’s (MD) and Deputy Managing Director’s (DMD) of the state companies of Maldives. Following the decision, MP Saeed tweeted saying that there are countless employees in various fields who aren’t receiving 50 percent of their basic salary and that this shows the carelessness of President Ibrahim Mohamed Solih.

MP Saeed said that increasing the salaries of MDs and DMDs of government companies while employees of private companies and resorts are facing seductions in their salaries is not something the government should have done.

According to the new policy, MD’s of utility companies that are operating branches in more than 111 islands can get MVR 16,000 as “Hardship Allowance,” while DMD’s can get MVR 12,800 as their allowance every month. For the state companies that provide “Social Security”, Finance Ministry has decided to give MD’s MVR 12,300 as “Special Allowance for Social Security” and MVR 9,840 for DMD’s of the same companies.

Salaries of MDs and DMDs according to the new policy

Category Managing Director (MD)Deputy Managing Director (DMD)
AMVR 52,260 MVR 41,808
BMVR 42,880 MVR 34,304
CMVR 34,304 MVR 27,443
DMVR 33,000 MVR 26,000
EMVR 27,443 MVR 21,955

In addition to this, Finance Ministry stated that allowance can also be given after reviewing the companies in category “A”, “B” and “C.” This allowance will be based on the financial rating of the companies varying from MVR 5,333 to MVR 30,000. Allowance for companies in category “D” and “E”, has been decided to be between MVR 8,000 to MVR 30,000.

According to the new policy, the MD’s of the companies in the highest categories are expected to receive a over MVR 113,000 as their salary, while the MD’s of the companies in the lowest categories can get approximately MVR 80,000, depending on their performance.Initially, there was no specific guideline to revise a company’s performance, however, under the new policy established by the Finance Ministry, salary for board members of companies will be given under one certain guideline.

Finance Ministry noted in their statement that instead of reviewing all companies under one guideline, it is more important to have a specific guideline that can help categorize and revise the performance of the different types of state companies.