Speaker’s salary to be raised to MVR 95K; changes to ministers, island councilors' allowances

The Parliament’s Public Accounts Committee, on Wednesday, approved a decision to increase the Speaker’s salary to MVR 95,000, raise car allowances for cabinet ministers, and increase the salaries of island council members.

According to a motion submitted to the Public Accounts Committee, the Parliament Speaker currently receives a monthly salary of MVR 73,125, while the Deputy Speaker earns MVR 91,000 and other MPs receive MVR 82,500.

During the committee meeting, it was explained that the salary disparity arises because the Speaker does not participate in parliamentary committees. MPs are eligible for additional allowances based on their attendance at committee meetings, receiving MVR 10,000 for attending between 50 and 75 percent of meetings and MVR 20,000 for attendance exceeding 75 percent.

To address this disparity, a recommendation was submitted to the committee to increase the Speaker’s allowance by MVR 22,000.

A separate proposal was also submitted to introduce a monthly service allowance of MVR 5,000 for island council presidents, vice presidents, and members.

During the committee meeting, it was noted that the proposed adjustment aims to narrow the salary gap between island councils and other local government bodies. Under the proposal, the total monthly remuneration of island council presidents would increase to MVR 30,500, while vice presidents would receive MVR 25,000. Council members’ monthly remuneration would rise to MVR 23,000.

A proposal was also put forth to increase the salaries of cabinet ministers. Citing, ministers currently receive a monthly salary of MVR 58,500, it was noted that recent revisions to the pay structure have resulted in salary increases across the judiciary, independent institutions, and local councils.

Following these revisions, salaries for certain autonomous positions within independent institutions have risen to MVR 74,000, while the heads of these institutions receive MVR 59,000. Within the judiciary, the Chief Justice earns MVR 91,000, while other judges receive MVR 89,000.

"In comparison, it is observed that Cabinet ministers receive lower remuneration. Therefore, the committee proposes to revise the existing driver allowance package for these officials, rather than adjusting their base salary," the proposal stated.

The current allowance package for senior government officials includes a petrol allowance of MVR 1,000 and a driving allowance of MVR 6,500.

Under the new proposal, the petrol allowance would increase to MVR 2,000, the driver’s salary to MVR 12,000, and a living allowance of MVR 3,000 would be introduced for drivers. This would bring the total allowance package to MVR 17,000.

Opposition MDP’s Hanimaadhoo MP Abdul Gafoor Moosa voiced his opposition to implementing the proposed changes at this time.

"We must consider the current economic situation of the Maldives and the prevailing global context. These changes would lead to significant fiscal implications for the state budget," he stated.

Despite his objections, the Public Accounts Committee, which is dominated by members of the ruling PNC, approved the proposed amendments.

With the number of parliamentary seats now standing at 93, the Constitution requires an increase in representation in line with population growth. Although MPs receive substantial salaries and various allowances, public concerns persist over their productivity in relation to their remuneration.

The decision to increase certain salaries comes amid growing concerns over the state’s fiscal deficit. According to the Finance Ministry’s latest report on revenue and expenditure as of October 15th, the state has received MVR 31.9 billion in revenue and grants so far this year. However, expenditure has exceeded revenue, reaching MVR 36.4 billion.

As the Maldives continues to face a growing debt burden, economic experts have for years called for reductions in public expenditure.