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Parliament committee to decide on minimum wage report by March 11

Fathmath Shaahunaz
02 March 2020, MVT 14:42
Minister of Economic Development Fayyaz Ismail discusses the minimum wage report with the parliamentary Committee on Economic Affairs. PHOTO/MAJLIS
Fathmath Shaahunaz
02 March 2020, MVT 14:42

The parliamentary Committee on Economic Affairs declared Monday that it would deliver a conclusive statement on the proposed minimum wage report before March 11.

Minister of Economic Development Fayyaz Ismail had initially declared that the minimum wage would be decided before the end of February. Amidst growing public criticism over the delay, the minister disclosed on Sunday that although the authority to determine a minimum wage is accorded solely to the economic minister, he had forwarded the report to the parliament last week to seek their counsel.

The economic committee passed to announce a decision before March 11 with the vote of four out of eight lawmakers present at the sitting. The committee chair broke the draw by voting in favour.

Dhuvaafaru MP Ismail Ahmed, who had lobbied the issue at the parliament, noted that the report submitted by the economic ministry comprised of extensive research and counsel from various sources. He asserted his stance that the committee would not have much to do before settling on a decision.

Fuvahmulah North MP Mohamed Rasheed also urged to settle the minimum wage before the upcoming Local Council Elections.

However, opposition lawmakers raised concerns that the matter, which would largely impact the general public, was being rushed. Former economic minister and current Maavah MP Mohamed Saeed stressed that the committee must conduct a full review and pose any questions and doubts regarding the report to the relevant authorities.

The former minister also opined that should the minimum wage be settled as per the current report, employers may nullify other allowances such as service charge for resort staff. However, service charge is a mandatory allowance under the Employment Act.

Naifaru MP Ahmed Shiyam further asserted that the new legislation must be well implemented and executed, which entails extensive work for the parliament. He called to meet all the relevant stakeholders, adding that rushing to implement a law might result in it being repealed within a few months.

The Minimum Wage Advisory Board formed by President Ibrahim Mohamed Solih has advised an overall minimum wage of MVR 6,400. A sum between 6,400 and 8,600 was suggested for employees of the tourism industry.

The proposed figures were set following thorough research into several factors including expected costs to employers and changes in outward remittances by expatriate workers.

The International Labour Organisation (ILO) had advised Maldives to set a minimum wage between MVR 6,000 and MVR 6,500.

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