Higher salaries commission abolished by cabinet

The salaries for people holding senior positions in government and state owned companies will no longer be determined by the Higher Salaries Commission as the commission has now been abolished by Cabinet.

The salaries of Chief Executive Officers of every government controlled company shall be determined by the Board of Directors of the company, following the approval of the Minister responsible for Public Enterprises and the Prime Minister.

The pay of every Permanent Secretary or other officers who manage a ministry or department shall be determined by the Public Service Commission, following the approval of the Prime Minister.

Also the salaries of Chief Executive Officers of every city, town and district council shall be determined by the Minister responsible for Local Government following approval of the Prime Minister.

Cabinet based its decision on a submission by Attorney General Aiyaz Sayed-Khaiyum who said the Commission is in existence since 1983 which lacks commercial understanding and sufficient knowledge of the market forces, and tends to apply a public service approach and comparison in determining the salaries of the entities.

Story by: Ronal Deo
Source: Cabinet Release