HDC Increases Annual Bonus for Employees to MVR 18,600

The Housing Development Corporation (HDC) has decided to award its employees an annual bonus of MVR 18,600, nearly doubling the amount paid last year. In 2024, employees received an annual bonus of MVR 10,000.

HDC, one of the largest employers among state-owned enterprises (SOEs), is regarded for offering competitive remuneration packages. The corporation was established in 2001 during former President Maumoon Abdul Gayoom’s administration to develop the artificial island of Hulhumalé and manage social housing initiatives to address the growing housing shortage in the capital.

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In 2019, then-President Ibrahim Mohamed Solih created the Fahi Dhiriulhun Corporation (FDC), a separate SOE focused on social housing projects nationwide. The move was met with criticism, as it raised questions about the need for two SOEs with overlapping mandates. Following the establishment of FDC, HDC shifted its focus from social housing to urban development.

Over the years, HDC has accumulated substantial debt to fund its projects, a situation exacerbated by the government’s decision to allocate some of the corporation’s largest land assets in Hulhumalé under the ‘Binveriya’ social housing scheme.

In 2024, President Dr. Mohamed Muizzu’s administration announced a SOE reform agenda aimed at reducing costs through the dissolution or consolidation of loss-making companies. This included plans to make FDC a subsidiary of HDC, but the merger was later put on hold amid concerns it would increase HDC’s already significant liabilities.