Pay equity has long been an aspiration for many economies. In recent years, the concept of pay transparency has gained momentum as a potential lever for closing wage gaps. But can making salaries more visible lead to a fairer pay structure in the Maldives?
In global contexts, pay transparency has been linked to shrinking gender wage gaps, increased employee trust, and greater organisational accountability. From Norway’s public tax records to the European Union requiring companies to disclose pay ranges, the idea is straightforward: when salaries are no longer a secret, it becomes harder to justify unfair disparities.
In the Maldives, however, the conversation is still in its infancy. While there are broad labour protections under the Employment Act and regulatory oversight from the Labour Relations Authority, wage transparency is not a legal requirement. In fact, salary information in most organisations, particularly in the private sector, is treated as confidential with limited disclosure even internally.
Yet, the Maldives is no stranger to pay disparities. Public sector salaries are accessible through government gazettes, revealing a steep gradient between political appointees, technical staff, and clerical workers. In the private sector, anecdotal evidence suggests wage gaps between locals and expatriates, men and women, and even across resorts for the same job role. Without data, however, those gaps remain speculative and unaddressed.
How Pay Transparency Could Help
Introducing greater transparency does not necessarily mean publishing everyone’s salary. It can begin with clearly defined pay bands, making it clear what a role is worth and how progression works. Such a framework allows employees to better understand where they stand and whether they are being paid fairly relative to peers.
Transparency can also help companies themselves. With well-documented compensation structures, businesses can improve recruitment, retention, and morale. It reduces room for favouritism, negotiation bias, or arbitrary decisions, which are common drivers of inequity.
In sectors such as hospitality, where a significant portion of the workforce comprises expatriates and service charges supplement basic pay, transparency in total compensation could also reduce tensions and improve trust between staff and management.
Risks and Cultural Resistance
That said, a move towards greater openness in pay will not be culturally neutral. The Maldivian workplace is often shaped by hierarchy, seniority, and discretion. Openly discussing salaries may feel intrusive or uncomfortable, particularly in small teams where anonymity is impossible.
There is also the risk that, without proper context or communication, transparency could backfire. It may lead to jealousy, misunderstanding, or internal dissatisfaction if discrepancies are not addressed in tandem with structural reforms.
Where to Begin
For companies in the Maldives considering this shift, a phased approach might be most appropriate. Begin by conducting internal pay audits to identify gaps. Establish consistent job grading systems. Make salary ranges clear during recruitment. Offer employees insight into how compensation decisions are made. It is also important to ensure that managers are trained to communicate about pay in an informed and equitable way.
Government bodies and industry associations can also play a role. Encouraging best practices, offering toolkits for businesses, and piloting voluntary pay reporting schemes could help lay the groundwork.
Ultimately, pay transparency is not a silver bullet. But in a country striving for economic fairness, sustainable development, and inclusive growth, it may well be a necessary step. For equity to thrive, people must first know where they stand.
