The national minimum wage is expected to be reviewed and finalised by the end of this year, following delays in the revision process required by law. Minister of Higher Education, Labour and Skills Development Dr Ali Haidar informed Parliament that work on the review only began after the current administration took office, as no steps had been taken by the previous government to initiate the process due in November 2023.
The Maldives’ current minimum wage was set in November 2021 and is required to be reviewed every two years. A new Minimum Wage Advisory Board was established on 3 July last year and convened its first meeting in late September. Progress was slowed after the board requested access to research conducted by its predecessor, many of whom had since exited public service.
The review is being carried out with technical guidance from the International Labour Organization (ILO), which has recommended a two-phase approach. The first phase, now underway, involves data collection through a labour force survey being conducted by the Maldives Bureau of Statistics. The second phase will involve a full economic impact assessment based on the collected data.
The current minimum wage structure in the Maldives varies by business size: MVR 4,500 per month for small businesses, MVR 7,000 for medium businesses and civil servants, and MVR 8,000 for large businesses.
Questions have also been raised regarding the exclusion of expatriate workers from minimum wage protections, which some argue creates incentives for employers to favour foreign hires over locals. According to the ministry, this concern will be addressed within the scope of the ongoing review and consultation process.
The revised wage rates are expected to reflect both the cost of living and wider economic conditions, with the aim of ensuring fair compensation while maintaining economic stability.
