Maldives leader to take 50% pay cut under new austerity move

Mal , Maldives: The president of cash strapped Maldives will take a 50 percent pay cut as part of an austerity drive that will see public sector salar...

Malé, Maldives: The president of cash-strapped Maldives will take a 50-percent pay cut as part of an austerity drive that will see public sector salaries reduced to prevent a debt crisis in the tourist hotspot, his office said Thursday.

Mohamed Muizzu is introducing a mandatory 10-percent pay cut to most public sector jobs, leading the belt-tightening with the biggest salary reduction, his office said in a statement.

A government source told AFP that Muizzu's annual salary will be reduced to 600,000 rufiyaa ($39,087) from next year -- down from 1.2 million rufiyaa but nearly double the average household income of 316,740 rufiyaa per year, according to a 2016 census.

Judges and lawmakers in parliament will be exempt from the cuts, though Muizzu's office said he expects them to share the burden by agreeing to a 10-percent cut voluntarily.

Two weeks ago, Muizzu sacked more than 225 political appointees, including ministers, in a bid to reduce the tiny atoll nation's expenditure.