Finance Ministry orders all institutions to pay back former govt’s civil servant salary cuts
19 Jul 2012, 5:32 PM
Ahmed Nazeer
The Finance Ministry has today issued a circular informing all institutions to pay the amount cut from civil servants from January 2010 to December 2012 by the former government, staring from July onwards.
The circular said the money should be paid monthly and not in a lump sum, and advised all institutions to pay the amount from the annual budget for wages. If the money in budget was not enough, the finance ministry advised the institution to cut the money from the budget allocated for other expenses.
The circular was signed by the Ministry’s Financial Controller, Mohamed Ahmed.
The reduction in civil servant pay was introduced by the previous government in an attempt to manage a financial crisis back in 2009. The initial deduction, agreed between the Finance ministry and the Civil Service Commission (CSC), was only due to last for three months until the government’s income had risen above Rf7billion (US$544 million).
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