Minister of Finance, Honorable Ibrahim Ameer suggested that with the current deteriorating economic condition, this may not be the right time for minimum wage decision and to delay the decision to 2022.
During the meeting of the People’s Majlis economic committee held on Tuesday, 16th June, the Minister stated that he supports the decision for minimum wage and that reflecting on the current economic condition. A decision can be considered when the economy recovers back to normal status similar to the economic condition during January.
Minister further stated that 22,378 staff out of 44,838 public sector employees have a basic salary below MVR 6,400.The Salaries and Wages Advisory Board conducted research and evaluations for setting Minimum Wage in the Maldives and has recommended a range between MVR 6,400 and 8,400 for tourism sector employees and civil servants which is applicable to the basic salary and should apply to both local and foreign workers.
The Minister of Finance further outlined that with the current high level of remittance consisting a major part of foreign employees’ salary, the outflow of foreign currency from the economy will additionally increase by USD 270.8 million considering the recommended Minimum Wage of MVR 6,400; the decision to apply Minimum Wage to foreign employees would not be a wise decision even in 2022 while the tourism industry as the main source of the inflow of foreign currency has come to a halt.