Parliament Pushes for Legal Changes to Enforce Pay Cuts for Senior Officials

The Parliament voted yesterday to advise the government to amend relevant laws to enforce a proposed pay cut for officials of independent institutions. 

The proposal specifies that salary reductions will apply to officials within independent institutions, the judiciary, and Parliament members for a period of two years.

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This proposal forms part of the administration’s broader economic reform and austerity measures, which aim to reduce public expenditure, budget deficits, and the national debt.

President Dr Mohamed Muizzu outlined that the two-year austerity plan includes a 10% reduction in the basic salaries of senior officials within independent institutions earning more than USD 778.34 per month.

However, the Parliamentary Finance Committee, after reviewing the proposal, stated that the salaries and allowances of independent institutions can only be revised following amendments to the relevant laws. The committee’s report also noted that such a decision would be unfair, as the salaries and allowances are structured to maintain organisational hierarchy and should be reduced equally. Consequently, the committee did not recommend a salary reduction at this time.

The committee’s report was passed by Parliament during Monday’s sitting, with 44 lawmakers voting in favour.

In addition, the committee recommended that the government identify institutions with similar mandates and merge them through legal amendments. The report also urged the government to propose the necessary legislative changes to enforce the pay cuts for officials of most independent institutions.