[Maldives] Proposed amendment to indefinitely postpone minimum wage of expat workers

In the Maldives, the government has proposed an amendment to the Employment Act to postpone the deadline for payment of minimum wage to foreign workers, The Edition reports.

The Employment Act was amended in 2020 to make a minimum wage compulsory. The government set a minimum wage under the Act which came into force in January 2021.

According to the Act, if an employee is a foreigner, the minimum wage fixed by the government will be applied two years after the Act comes into effect.

However, the government now reportedly wants to postpone the deadline for paying foreign workers the minimum wage because of the way the global economic situation has adversely affected the Maldives.

The amendment bill was introduced in Parliament and the first reading of the bill was heard on September 7.

The government said the bill was proposed to postpone the minimum wage liable for foreign workers from September 22.

According to the proposed amendment to Article 62(g) of the Employment Act, the minimum wage will be paid taking into account the economic situation of the country, on a date fixed by the government on the advice of the Advisory Board.

However, some associations have expressed concern over the delay in paying the minimum wage to foreign workers. They said the rights of foreign workers could be violated and fear that the problem of human trafficking could be exacerbated.

Minimum wage rates according to business size

• Small businesses: MVR 4,500 per month.
• Medium-sized businesses: MVR 7,000 per month.
• Large businesses: MVR 8,000 per month.
• Civil Service: MVR 7,000 per month.

In the Maldives, the government has proposed an amendment to the Employment Act to postpone the deadline for payment of minimum wage to foreign workers, The Edition reports.

The Employment Act was amended in 2020 to make a minimum wage compulsory. The government set a minimum wage under the Act which came into force in January 2021.

According to the Act, if an employee is a foreigner, the minimum wage fixed by the government will be applied two years after the Act comes into effect.

However, the government now reportedly wants to postpone the deadline for paying foreign workers the minimum wage because of the way the global economic situation has adversely affected the Maldives.

The amendment bill was introduced in Parliament and the first reading of the bill was heard on September 7.

The government said the bill was proposed to postpone the minimum wage liable for foreign workers from September 22.

According to the proposed amendment to Article 62(g) of the Employment Act, the minimum wage will be paid taking into account the economic situation of the country, on a date fixed by the government on the advice of the Advisory Board.

However, some associations have expressed concern over the delay in paying the minimum wage to foreign workers. They said the rights of foreign workers could be violated and fear that the problem of human trafficking could be exacerbated.

Minimum wage rates according to business size

• Small businesses: MVR 4,500 per month.
• Medium-sized businesses: MVR 7,000 per month.
• Large businesses: MVR 8,000 per month.
• Civil Service: MVR 7,000 per month.