The number of government employees has increased by 6,530 over the past three years since the current administration took office, according to the 2027 budget proposal submitted to the People’s Majlis by the Ministry of Finance.
Details in the budget book show that at the end of 2023—the final year of the previous administration—the government employed 48,936 people. That figure has now risen to 55,466.
Furthermore, statistics indicate that the rate of recruitment during the first three years of this administration has accelerated compared to the preceding three-year period.
According to figures included in the Finance Ministry's budget book, there were 44,128 government employees in 2020. This number grew annually to reach 48,936 by the end of 2023. Between 2020 and 2023, a total of 4,808 employees were added, representing an average annual increase of 1,603.
In contrast, 6,530 employees were added during the three-year period under the current administration alone. This represents an average annual increase of 2,177 employees. The workforce grew from 51,734 in 2024 to 53,879 last year, reaching 55,466 this year.
Alongside the headcount, the national wage bill—comprising salaries and allowances—has also surged significantly. Excluding pensions, salary expenditures rose from MVR 10.2 billion in 2023 to MVR 11.6 billion in 2024. While MVR 12.5 billion was spent last year, expenditures are projected to reach MVR 13.9 billion this year.
This reflects a total increase of MVR 3.7 billion in salary costs over the current administration's three-year tenure, averaging an annual hike of approximately MVR 1.2 billion. However, the government stated in the budget that such a sharp increase is not expected next year.
The budgeted salary expenditure for next year is MVR 14.4 billion, an increase of MVR 500 million over the current year. Of this, MVR 7.9 billion is allocated for basic salaries, while MVR 6.5 billion is earmarked for allowances.
Based on these figures, nearly one-third of the state’s projected revenue of MVR 43.2 billion for next year will be spent on salaries. Furthermore, salaries and allowances constitute the largest share of total administrative costs.
The Ministry of Finance attributed the rising wage bill to the creation of new agencies, the expansion of institutional mandates, and adjustments following the pay harmonisation initiative launched in 2022. Pay harmonisation is cited as the primary driver for next year's cost increase, followed by the recruitment of new staff this year.
During the initial year of this policy under the previous administration, salaries for teachers and education sector staff were increased. The following year saw salary hikes in the health sector and the introduction of a 35 percent allowance for all civil servants.
The current administration opted to maintain this policy, transitioning teachers to a new pay framework last year. In November last year, pay was harmonised for other education sector staff, the civil service, the judiciary, and local council employees.
Additionally, salaries for the military and police were increased last year, and a national service program was launched to bolster security service personnel. These factors are also expected to drive up salary expenditures.
The Finance Ministry noted in the budget that pension costs are also rising, as retirement benefits have increased following pay harmonisation.
In the fiscal risk section of the budget book, the Ministry warned that without measures to control personnel costs under pay harmonization, salary expenditures could exceed sustainable levels. It further highlighted that the risk of a ballooning wage bill would intensify if the rate of recruitment is not curtailed.
However, the government maintains that once pay harmonisation is fully completed this year, personnel costs will stabilise at the projected levels for next year over the medium term. According to the budget, all employees will be under the harmonised pay scales starting next year.
The government has also outlined measures in the budget to control personnel costs.
These include setting a maximum ceiling for overtime pay and tightening controls on recruitment and organisational structure. The government also believes that digitising and automating processes will help maintain staff growth at a sustainable level.
The biggest criticism directed at the current administration regarding workforce growth concerns the high number of political appointees. When the government last disclosed these figures, it reported 922 political employees as of July last year. However, the opposition claims the actual number runs into the thousands.
This specific data cannot be verified through the budget documents. Due to the ongoing pay harmonization process, there is currently no clear mechanism to distinguish exactly how much of the salary expenditure increase is driven by specific categories of employment.
