Economic Minister Fayyaz Ismail has stated that the minimum wage will be declared on Monday.
Maldives’ Minimum Wage Board had submitted its minimum wage recommendations to the Economic Ministry on 5th October 2021. The minimum wage was based on four main categories, done in accordance with the guidance provided by law. In this regard, minimum wage was decided based on how much an employee would be paid per hour.
Minister Fayyaz revealed to local news media that the minimum wage will be finalized and declared on Monday, 8th November 2021. He noted that the Maldivian economy will see major changes as a result of the implementation of a minimum wage, and that the rates will be finalized taking into account the rights of both employees and employers.
Once finalized, the minimum wage will be implemented starting from January 2022, according to the Minister.
According to the minimum wage recommendations, civil servants will be eligible for a minimum wage of MVR 7,000 per 6 hours of work per day. Meanwhile, small enterprises are required to pay their employees a minimum wage of MVR 5,700. 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.
In addition to this, 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.