On 21 September 2022, the Maldives government gazetted the Seventh Amendment to the Employment Act (Law No 15/2022), which removed the obligation on employers to pay minimum wage to expatriate employees in accordance with the Minimum Wage Order until a compliance date is announced by the Minister of Economic Development.
The establishment of the minimum wage is guided by the Sixth Amendment to the Employment Act, which established a Minimum Wage Advisory Board to advise the Minister on the minimum wage to be given to employees with considerations to different business sectors. Within 30 days of receipt of the advice of the Minimum Wage Board, the Minister is required to issue an order determining the minimum wage. The current minimum wage to employees working in Maldives was established pursuant to the Minimum Wage Order published on 8 November 2021.
However, the Order did not include minimum wage determined for expatriate employees working in Maldives. Section 62(g) of the Employment Act obligated employers with expatriate employees to comply with the Order within two years from 22 September 2020. This obligation has been removed by the Seventh Amendment, and the Minister is now required to announce a date of compliance for such employers to comply with the Order.
This change removes the statutory time period provided under the Sixth Amendment, essentially delaying the period until a date of compliance is publicly announced by the Minister. The effective date of the Seventh Amendment is 21 September 2022.
The Amendment has implications for employers with expatriate employees in Maldives. Employers should keep an eye out for the announcement of the compliance date by the Minister and be prepared to comply with the Order once it is announced.