PCB Orders Salary Reduction for SOE Directors as Cost-Cutting Measure

The Privatisation and Corporatisation Board (PCB) has ordered a reduction in the salaries of heads of state-owned enterprises (SOEs) to MVR 90,000. 

The directive was issued in a circular on last Thursday as part of the government’s cost-cutting measures.

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According to the PCB, the decision was made in line with instructions from President Dr Mohamed Muizzu and will remain in effect for the next two years. The circular states that directors receiving a remuneration, inclusive of allowances, exceeding MVR 90,000 must have their salaries adjusted to ensure they do not surpass this limit. However, this measure applies only to local directors, while foreign directors are exempt.

The PCB has also instructed that employment contracts be amended accordingly, with technical staff exempted from the changes. The salary reduction will be implemented across all SOEs from January, with the exception of banks.

The announcement follows broader cost-cutting initiatives within SOEs. President Muizzu had previously stated his intention to reduce his own salary and that of parliament members by 50 per cent in 2025. This reduction will also remain in effect for a two-year period.