Parliament Approves Transfer of LGA Staff to Civil Service

The Maldives Parliament has approved amendments to the Decentralisation of Administrative Areas Act that will transfer employees of the Local Government Authority (LGA) to the civil service system.

The bill, proposed by Fuvahmulah North MP Hamad Abdullah, was passed during Tuesday’s parliamentary sitting with the support of 59 members.

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The amendment is aimed at strengthening the operations of the LGA by bringing its employees under civil service regulations. It also revises provisions related to waste management services provided by local councils.

Changes were introduced to the bill by the parliamentary decentralisation committee during its review. Under the amended law, the Civil Service Commission will be responsible for appointing and dismissing LGA employees based on recommendations from the Authority. The LGA’s Chief Executive Officer will oversee employee matters, while salaries and allowances will be determined by the National Pay Commission.

The committee also introduced amendments concerning the allocation of state revenue to councils. Under the new rules, if councils have unpaid obligations to the state — including taxes and bills for electricity, water, sewerage and waste management services — that are more than six months overdue, the outstanding amounts will be deducted from state grants before the remaining funds are disbursed.

The LGA is tasked with overseeing the work of local councils under the Decentralisation Act. Under the existing law, the LGA board holds authority to appoint employees directly, but the latest amendment shifts the system to one governed by civil service regulations.

In a separate matter, Parliament also passed amendments to the Pensions Act aimed at expanding the use of pension funds. The bill, submitted by Milandhoo MP Hassan Mufeed Abdul Gadir, was approved with 61 votes.

The amendments would allow pensioners to use pension savings to pay for treatment of major illnesses. The bill also states that individuals whose income exceeds the elderly basic pension threshold will no longer be eligible to receive the allowance.

In addition, the legislation proposes allowing pension funds to be used as collateral for house construction and repair, and to reserve places for Hajj in advance. The amendments also seek to formalise rules governing the allocation of pension fund money.