Maldives minimum wage board has set the minimum wage rate to MVR 5,700, yet to be approved by the Economic Ministry. According to the minimum wage rate, civil servants will be eligible for a minimum wage of MVR 7,000 per 6 hours of work per day. Meanwhile, small and medium enterprises are required to pay their employees a minimum wage of MVR 5,700.
In addition to this, the minimum wage has also been set for hourly-paid works and the overtime pay is required to be the same as the minimum wage. As per the minimum wage policy, the minimum wage shall be 70% of the basic salary. Furthermore, if the employers are providing accommodation and food for the employees, it cannot be included in the minimum wage. However, fixed allowances can be fixed into the pay structure of the employees.
Medium-scale businesses are required to pay employees a minimum wage of MVR 8,000 for 8 hours of work per day. In the meantime, large-scale businesses are required to pay employees a minimum wage of MVR 10,200. The minimum wage board has not set a minimum wage for small businesses.
Previously according to the law, it requires to set a minimum wage for foreigners after 2 years since the minimum wage rate starts getting implemented. However, changes have been brought due to financial downturns that took in the country’s economy due to COVID-19. As per this change proposed by the government, the minimum wage rate will be set for foreigners after 5 years of minimum wage rate implementation.