The Parliament, on Sunday, passed an amendment to the Employment Act.
According to the amendment proposed by parliamentary representative for Addu City’s Hulhudhoo constituency MP Ilyas Labeeb and passed by 55 lawmakers, a minimum wage will be assigned by the Ministry of Economic Development, based on the counsel of the Minimum Wage Board by the end of the year.
The initial proposal was reviewed and amended through a joint Parliamentary Committee on Social Affairs and Economic Affairs and includes additional changes.
Although minimum wage was initially proposed for seven sectors, two more were passed by the committee.
1. Fisheries and Agriculture
2. Tourism
3. Construction
4. Transport
5. Health
6. Education
7. Small and Medium Enterprises
8. Information
9. Communication and Technology
In addition to minimum wage, the amendments also assigned an MVR 5,000 fee for employers failing to disclose any requested information to relevant authorities.
MP Ilyas had previously noted that the minimum wage would be set between MVR 4,000 and MVR 8,000.
Earlier this year, while addressing public concern over the minimum wage being too low, Minister of Economic Development Fayyaz Ismail stated that forcing an unrealistic minimum wage may drive businesses to bankruptcy, leading to possible reductions in the number of total available jobs as well as other negative consequences.
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