Tag: pay

Teachers forced to work overtime without pay: Teachers Association

The Teachers Association has voiced concern over claims that teachers are being forced to work overtime by certain schools without pay.

President of the Teachers Association, Athif Abdul Hakeen, told local media that teachers are only paid 8 hours worth of overtime regardless of the length of their extra working hours.

In accordance to Article 37 (b) of the Employment Act, Athif told local media that it is mandatory for all employers to pay their staff for the time spent working beyond scheduled working hours.

“I would like to tell all heads of schools to refrain from forcing any staff to work for more than 8 hours.

“If they are to work more than the mentioned 8 hours, they shall be paid for their overtime work, as mentioned by Article 60 of the Civil Service Act,” Athif was quoted as saying in SunOnline.

The Teachers Association president claimed that some schools have threatened teachers who refuse to work overtime, stating that ‘they might have to think twice’ about how they fill out their appraisal forms.

Education Minister Asim Ahmed told local media that claims by the Teachers Association regarding a lack of overtime payment are lies that have no basis.

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Government silent over Maldives bankruptcy claims

The government has refused to comment on claims made in local media by leader of the coalition-aligned Jumhoree Party (JP) that the Maldives was now bankrupt and already unable to pay some civil servants.

JP Leader and MP Gasim Ibrahim claimed that despite government efforts, the Maldives was now bankrupt and unable to pay some civil servants after steady economic decline within the nation, according to newspaper Haveeru.

Just last month, Parliament’s Financial Committee revealed that expected revenue for 2012 had plunged 23 percent, whilst spending was set to increase by almost 24 percent.

President’s Office Spokesperson Abbas Adil Riza today said that he was unaware of the bankruptcy comments linked to Gasim and could not comment on the matter, referring Minivan News to Minister of Finance and Treasury Abdulla Jihad.

Both Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls by Minivan News at the time of press.

Although the country’s Civil Service Commission (CSC) said that it had been involved in discussions with the Minister of Finance to try and overcome economic concerns, Chairman Mohamed Fahmy Hassan said that there had as yet been no issue with payments to staff.

“As of last month, all payments have been made in full, however it is the Finance Ministry who would know about the current situation,” he said.

Speaking to Minivan News on Saturday, Maldives National Defence Force (MNDF) spokesperson Major Abdul Raheem said despite some reports circulating to the contrary, he was not aware of any problems with payments to military officers.

Spending review

In attempts to counter its present spending shortfall, the government has unveiled proposals such as a revision to the country’s import duties and Goods and Services Tax (GST) to alleviate its financial difficulties.

The proposals have come under criticism from former finance chiefs serving under the previous government, who allege that such changes “do not make sense”.

Whilst committed to reducing state expenditure, Jihad recently announced his aim to avoid cutting the salaries of civil servants in order to tackle the nation’s budget deficit, seeking to make savings in other areas of expenditure first.

“Civil servants are the lowest ranking of all government employees. We will try to cut all non-wage expenditure by 15 percent. Salaries will be considered after this,” he said at the time.

Despite this pledge, Jihad added that a review of public salaries was set to be conducted by a pay review board that would also focus on independent commissions in order to reach an agreement on the necessary reductions.

Civil Service salaries

Between 2004 and 2009, the country’s fiscal deficit increased exponentially on the back of a 400 percent increase in the government’s wage bill.

The year’s 2007 to 2009 included the most significant largesse as the World Bank found wage expenditure to have increased from Rf 2 billion to almost Rf 5 billion even as revenues began to recede.

According to statistics from the Civil Service Commission (CSC), the number of permanent civil servants has more than halved between 2006 and June 2011.  There has been some contention in the past, however, that the transfer of many civil servants to state owned companies under the previous government masked the true figures.

The Maldives Monetary Authority (MMA) published figures for May that estimated the government will spend Rf2.6billion (US$168 million) on salaries and wages in 2012.

Maldives Bankrupt?

JP Leader Gasim – himself a former finance minister – claimed the Maldives had already been bankrupted after steady economic declines in recent years. He said that the evidence of the country’s troubled economy may not be immediately apparent, but would be seen in the “near future” as the state lacked the “necessary finance” to settle debts, according to Haveeru.

Gasim was reported as saying that “pointing fingers and blaming others” would not provide the country with an economic solution, calling instead for parliament to pass bills to alleviate the economic situation. The nature of these bills were not specified in local media.

Gasim’s phone was today switched off, while JP presidential candidate Ibrahim Didi was not responding to calls.

However speaking to local media, the JP leader added that the “actions of some” had negatively impacted on the nation’s economy, pointing to what he claimed were calls for a boycott of the Maldivian tourism industry.

Gasim, Maldives Vice President Waheed Deen and Progressive Party of the Maldives (PPM) MP Abdulla Jabir are among a number of figures associated with the present coalition government that are included in a list of resort owners included in the Maldives Tourism Advisory (MTA).

The advisory, established by the Friends of Maldives NGO, has a website utilising a ‘traffic light’ system recommending guests avoid resorts alleged by the Maldivian Democratic Party (MDP) to be directly linked in bringing about February’s controversial transfer of power.

Travel associations in the country have in turn criticised the MTA, expressing “serious concern” over what it alleged was a “concerted international campaign against several of the country’s resort operators.

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Finance Minister to convene pay board despite professed reluctance to cut wages

Minister of Finance and Treasury Abdullah Jihad said today he would avoid cutting the salaries of civil servants in order to tackle the budget deficit which has spiralled to 27 percent of GDP.

He told Minivan News that he would seek to make savings in other areas of expenditure first.

“Civil servants are the lowest down of all government employees. We will try to cut all non-wage expenditure by 15 percent. Salaries will be considered after this,” said Jihad.

The minister’s comments today came after local newspaper Haveeru reported him as having said on Friday that the government was to review the pay of all state employees.

Jihad was reported as having said that the government may have to consider cuts of between 10 and 15 percent in order to save up to Rf2.5billion (US$162 million) from the state budget.

The Finance Ministry’s most recent weekly figures revealed the state’s expenditure to have been 140 percent of its income this year, resulting in a Rf1.5billion (US$97 million) overspend which has been predicted to reach over Rf9 billion (US$584 million) by the year’s end.

However, speaking with Minivan News today, Jihad said that the view expressed in the article was “just an opinion” although he did confirm that a pay board, mentioned in Haveeru, was being formed in order to “harmonise” the pay of all government employees.

The minister said that the review of public salaries will be conducted by a pay review board which will include independent commissions in order to reach an agreement on the necessary reductions.

Sun Online has quoted a senior official at the Finance Ministry as saying that the cabinet had already decided to make cuts of 15 percent to all executive branch agencies although Jihad stressed to Minivan News that no decisions had been made regarding any wage cuts.

“The Cabinet has not yet decided on any cuts,” said Jihad, “we cannot just impose these cuts, we have to agree.”

Parliament’s Financial Committee revealed earlier this month that expected revenue for 2012 had plunged 23 percent , whilst spending was set to increase by almost 24 percent.

Between 2004 and 2009, the country’s fiscal deficit increased exponentially on the back of a 400 percent increase in the government’s wage bill. The year’s 2007 to 2009 included the most significant largesse as the World Bank found wage expenditure to have increased from Rf2billion to almost Rf5billion even as revenues began to recede.

According to statistics from the Civil Service Commission (CSC), the number of permanent civil servants has more than halved between 2006 and June 2011. There has been some contention in the past, however, that the transfer of many civil servants to state owned companies under the previous government masked the true figures.

The Maldives Monetary Authority (MMA) published figures for May estimated that the government will spend Rf2.6billion (US$168million) on salaries and wages in 2012.

This represents only 12 percent of the  GDP figures for 2012, predicted in November last year. The figures announced by the finance ministry earlier this month, however, suggest that salaries and wages will now make up 31 percent of the government’s income.

The Governor of the MMA Dr Fazeel Najeeb was reported as saying that the country was experiencing the worst financial crisis in recent history during a finance forum held last week on Bandos Island resort.

“Expenditure in the country has exceeded income, and as a result the budget deficit is increasing. From November 2010 inflation has also been going up,” he said.

The country last year spent 63.1 percent of its GDP on state expenses, Dr Najeeb claimed, adding that only four countries had worse percentages, including Cuba and Zimbabwe.

The Maldives Monetary Authority (MMA) figures for May estimated that the government will spend Rf2.6billion on salaries and wages in 2012.

The previous administration of President Mohamed Nasheed saw the government’s balance of payments fall from 21 percent of GDP in 2009 to an estimated 10.2 percent last year, according to the statistics provided by the Ministry of Finance and Treasury.

Jihad contended in  Haveeru that it was the expenses of the former administration that had left the current government in financial dire straits.

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Rise in female unemployment, growth in gender pay disparity

A woman working in the Maldives between 2006 and 2010 monthly earned a third less than her male counterpart in the same job, according the results of a new survey by the Department of National Planning, while young female entrants  are struggling to find jobs.

High female unemployment

According to the ‘Household Income and Expenditure Survey 2009-2010’, 38,493 people (28 percent) were unemployed in 2010, of which 14,142 (37 percent) were male while 24,351 were female – almost double the male rate of unemployment.

The report highlights that between 2006 and 2010 unemployment increased by 20,000 – an increase of over 100 percent. The number of jobless women and men rose by 93 percent and 141 percent respectively.

According to the report, unemployment continued to be highest among females. In 2006, the overall unemployment rate for women was 15 percent, increasing to 39 percent in 2010, while male unemployment increased 10 percent to 19 percent in the same period.

Furthermore, nearly half the population of working-age women (45 percent) were recorded as not economically active, while only a fourth of the male working age population fell in this category. However the study did not take into account the high proportion of women working in small household-manufacturing activities, or those working on industrial islands or resorts – which if included, will significantly affect the results drawn under this survey.

While 40 percent women surveyed reported the reason for their unemployment as “unable to find suitable employment”, the second highest reason for female joblessness was due to their “engagement in household chores”. This was followed by “lack of opportunities” and “school attendance”.

The report also concluded that most unemployment existed in the young age groups, with the 15- 19 years and 20 – 24 years age group accounting for about 43 percent of the unemployment in the country. Out of the 17,083 unemployed youth, 51 percent are males, and 49 percent female.

The planning department stated that “for policy purposes, it is very important to decipher the reasons for the high levels of unemployment, in the youth age group as well as among the females, and understanding the differences between locations.”

Among the reasons for unemployment in the youth group (15 – 24 years), “unable to find suitable employment” ranks the highest followed by “lack of opportunities” and in third “youth engaged in studies”, according to the survey.

Struggle for work

Employment of males increased four percent during the four year period, while employment of women fell seven percent.

The planning department concluded that “this indicates a huge influx of ‘new working age population’ to the labour force, of which more male entrants succeeded in obtaining a job while the fairer sex did not.”

“It is clear from the rising levels of unemployment that the Maldives has been unable to create jobs to accommodate new job seekers. Particularly young new entrants, and specifically females in the job market, struggle to find a job.”

“For males, it is the age groups at both ends that experience significant unemployment, while for the females, all age groups have similar unemployment rates except for the 65 years and above,” the department added.

Between 2006 and 2010, the total working age population increased significantly, however, “new jobs did not emerge to absorb this huge increase, boosting unemployment,” the report observed. “In fact compared to 2006, in 2010 there were close to 600 fewer jobs in the labour market.”

The total larbor force amounted to 136,886 people in 2010, of which 45 percent were women.

According to a UNDP report “Women in Public Life in the Maldives” published last year  a “considerable gap”  exists in women’s opportunities in taking active part in economic and political life” while “there were no policies in place that provide equal opportunities for women’s employment.”

“The absence of childcare facilities make it difficult for women to remain employed after they have children. The HRCM also received reports that some employers discouraged women from marriage or pregnancy, as it could result in employment termination or demotion,” the report said.

Restriction on women’s mobility and reluctance from family members to allow women to travel alone to other islands for work were also identified as key obstacle to employment.

While the tourism industry contributes indirectly to over 70 percent of the national income, a report published in September 2011found that social stigma prevented women from working in the sector.

According to the study, “Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector”, Maldivian women accounted for only three percent of all women working in the sector – which was already 92 percent male dominated.

Gender earning gaps

The planning department found during the survey that “similar work  paid different remunerations depending on sex and location.”

According to the report, on average a male earned Rf7036 (US$456) per month, whereas a female earned about a third less of what a male earned – Rf4674 (US$303). This discrepancy is observed across Male’ as well as the atolls.

For example, in the ‘Financial Intermediation’ and ‘Extra-territorial’ industries, which account for highest monthly incomes, a male earned more than Rf11,000 (US$713) whereas a female in this same industry earned 19 percent less – Rf9000 (US$583). Men earned more than women in almost all industries studied.

Meanwhile, legislators, senior officials and managers across the board on average earned the highest monthly income, with males in this occupation category earning more than Rf13,000 (US$843) while females earned only a little more than Rf 9000 (US$583).

“Those employed in Male’ earn more than those in the atolls for all industries except quarrying and the financial intermediation industries,” noted the Planning Department in the report. “This signifies that across all industries, males are paid higher than females and earners in Male’ are paid higher than those in the atolls.”

“It is interesting to study the returns to employment for wage earners by occupation, by location, and gender. The question why males are paid higher incomes than females, for the same jobs and in the same occupation or same industry, is worth additional research,” the department suggested.

Financial intermediation sector and extra-territorial organizations and bodies sector were found to have the slightest indication of gender balance in the workforce, while all other industries were dominated by male or female.

More women were employed in elementary occupations with a substantial 21 percent increase while male employment decreased in this occupation by three percent, the report noted. A high proportion of these jobs are concentrated in the public administration, with a higher share of women amongst the government employees.

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