Government Formalizes Minimum Wage in the Maldives

On 8 November 2021, the Ministry of Economic Development published the Minimum Wage Order which outlines the scope and amount of minimum wage in the Maldives. The Order was declared under Section 59 of Law No: 2/2008 (Employment Act).

This Order is only applicable to Maldivians and exempts any foreign workers in the country. The Minimum Wage Order will be effective from 1 January 2022.

Remuneration that fall within minimum wage

  • Basic Salary
  • Fixed Allowance

Remuneration that do not fall within minimum wage

  • Overtime allowance
  • Ramadan allowance
  • Service Charge
  • Any other allowances given considering the situation and responsibilities
  • Allowance or bonus given during a specific period
  • In-kind benefits or expenses

Minimum wage price floor for private sector

Fig 1: Minimum wage price floor for private sector

Standard to determine the scale of the business

Fig 2: Classification of scale of businesses

 Minimum wage price floor for public sector

The Public Sector is required to pay a minimum of MVR 33.65 per hour and permanent employees of the public sector must be paid a minimum of MVR 7000 per month.

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