Amendment proposed to postpone minimum wage of expat workers indefinitely

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

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

According to the Act, if the 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 wants to postpone the deadline for paying foreign workers the minimum wage as the global economic situation has adversely affected the Maldives as well.

The amendment bill was introduced in the Parliament and the first reading of the bill was heard today.

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.

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 the problem of human trafficking could be exacerbated.

Minimum wage 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.