Minimum wage review to be completed by December: Minister

Higher Education, Labour and Skills Development Minister Dr Ali Haidar has announced that the review of the national minimum wage will be completed by December this year.

Minister Haidar was summoned to Parliament today to respond to questions from Kendhoo MP Mauroof Zakir, who raised concerns over the delay in revising the minimum wage, a process required by law every two years.

Maldives’ minimum wage was last set in November 2021 and was due for review in November 2023. However, no steps had been taken by the previous administration to begin the review process, Dr Haidar said.

“When this government came to office, the work of labour relations was transferred under the Higher Education Ministry, and only then did we begin work on this matter,” he said.

A new Minimum Wage Advisory Board was formed on July 3 last year, and held its first meeting on September 22. The Minister noted that additional delays arose as the new board requested access to research conducted by its predecessor, many of whose members have since left public service. He also said the government had consulted the International Labour Organization (ILO) for technical support.

According to Minister Haidar, the ILO has recommended implementing the revised minimum wage in two phases. Phase one includes data collection, which is currently underway, while phase two involves a full impact assessment.

“The labour force survey is being conducted by Maldives Statistics Bureau. Once that is complete, we expect to finalize the review by December,” he said.

The Minister assured that the revised minimum wage would be determined in a way that balances workers’ needs with the broader economic impact.

Maldives currently sets the minimum wage at:

- MVR 4,500 per month for small businesses

- MVR 7,000 per month for medium businesses and civil service

- MVR 8,000 per month for large businesses

The issue of hiring expatriates instead of locals as they are excluded from minimum wage protections was also raised. In response, Dr Haidar said the matter would be addressed as part of the ongoing review and consultation.