Insurance Scheme to be introduced as support for those losing jobs

A bill has been submitted to parliament seeking to introduce an insurance scheme to provide financial assistance in the duration it takes to find new employment to those who lose jobs.

The bill is being proposed by the former administration. It was submitted to parliament by Fuvahmulah Centre constituency MP Hussain Mohamed Didi, representing Maldivian Democratic Party (MDP).

The bill details the establishment of an unemployment insurance fund, and how investments will be made from it. The Maldives Pension Administration is slated to manage the scheme.

The bill includes the provision of a 'job search' allowance to those who are temporarily unemployed.

Once the bill is ratified, all employees in the public and private sectors must be registered to the scheme. The fund will provide financial support to those who have served a minimum of three months in a government job or six months in the private sector.

Every employee must register with the scheme within thirty days of their employment.

As per the bill, the scheme will be managed through including employees in the scheme, where the employer and employee both invest a set amount in the scheme.

Both parties are required to submit 0.75 percent of the pension amount to this fund, and it has to be submitted together with the pension contribution.

The bill proposes to consider the pension amount at the time of becoming unemployed, and provide 70 percent of the salary. The amount would be between a minimum of MVR 3000 and a maximum of MVR 10,000. The allowance can be received for a maximum period of three consecutive months.

This scheme does not apply to persons who resign of their own accord, are voluntarily dismissed, dismissed due to incompetence or retire.

A governing board will be adopted to oversee the fund. This board will include a Chairperson, Pension Office's CEO, a Pension Office Board Member, a senior official from the Economic Ministry and Finance Ministry each, and a representative of the private sector.

The bill also proposes tasking the National Job Centre to establish a 're-employment placement' programme to assist persons seeking new jobs.