On 8 November 2021, the Ministry of Economic Development in the Maldives published the Minimum Wage Order, which established the minimum wage for Maldivian employees. The Order was made under Section 59 of Employment Act (Law No: 2/2008) and effective from 1 January 2022. The Order outlines the scope and amount of minimum wage in the Maldives and provides guidance on the remuneration that falls within and outside the minimum wage.
It’s important to note that the Minimum Wage Order is only applicable to Maldivian employees and does not apply to foreign workers in the country. The Economic Ministry has announced that the minimum wage for Maldivian employees will vary depending on the size of the business and the number of hours worked per week.
According to the recommendation, employees who work 48 hours per week will earn a minimum of MVR 5,000 per month. Medium-sized businesses are expected to pay their employees a minimum of MVR 7,000 per month, while large companies will pay MVR 8,900 per month.
The minimum wage for small businesses has been set at MVR 21.63 per hour, while medium-sized businesses will pay at MVR 36.65 per hour. Large businesses will pay MVR 38.46 per hour The government has set the minimum wage for public sector employees at MVR 33.65 per hour. Permanent employees who work at least 30 hours per week will receive a monthly wage of MVR 7,000.
It’s important to note that the minimum wage only includes the basic salary and fixed allowances. Non-fixed allowances such as overtime, Ramadan allowance, and service charge are not included in the minimum wage. Employers are free to provide additional benefits and allowances to their employees if they wish to do so.
Employers are expected to comply with the Minimum Wage Order and ensure that their employees receive at least the minimum wage as stipulated in the Order. Failure to comply with the Order may result in penalties and legal action.