COVID-19: New Zealand PM Leads Salary Cut Movement Among Officials

Jacinda Ardern (Instagram/@jacindaardern)

JAKARTA - The COVID-19 pandemic does not only affect social life. COVID-19 also puts pressure on a country's economic sector. Therefore, many countries around the world have been scheming in reducing the impact of the economic crisis that is getting worse.

New Zealand, for example. Prime Minister Jacinda Ardern, another line of government ministers, and the chief executive of public services will cut wages of as much as 20 percent over the next six months to reduce the impact of COVID-19.

Launching Reuters, Ardern said this step must be taken to minimize the impact of the lockdown. As a result, many offices, schools and non-essential services in New Zealand have been closed for the past three weeks resulting in a halt to economic activity.

Moreover, the New Zealand government has estimated that the number of unemployed will increase due to the slowdown in the global and domestic economic cycle. For that, the option to cut wages is something that must be taken.

"This is where we can take action and that's why we do it ... We recognize New Zealanders who are dependent on subsidies, face pay cuts and have lost their jobs due to the global pandemic," Ardern said.

In addition, the New Zealand government will decide, within the next week, the need to extend the lockdown or relax a little with an emphasis on allowing economic activity to continue during the lockdown.

In fact, New Zealand Finance Minister Grant Robertson also said that the annual budget which will be announced on May 14 will also focus on recovering several vital sectors affected by COVID-19.

"This will include funding that is emphasized to keep our country productive. However, we will devote a lot of resources to remedy this situation, "Robertson said in a speech to business leaders in New Zealand.