The review of the Maldives’ national minimum wage will be completed by December this year, according to Higher Education, Labour and Skills Development Minister Dr Ali Haidar.
The announcement was made on the Parliament floor on Thursday in response to questions from Kendhoo MP Mauroof Zakir, who voiced concerns about the delay in revising the minimum wage — a review required by law every two years. The last update to the national wage structure was made in November 2021, with the next review due in November 2023.
Dr Haidar noted that the delay stemmed from inaction by the previous administration, stating that no progress had been made before the new government assumed office.
“When this administration took over, labour relations were shifted under the Ministry of Higher Education. Only then did we begin work on the minimum wage review,” the Minister explained.
To begin the process, a new Minimum Wage Advisory Board was established on July 3, 2024, and convened for the first time in September. However, Dr Haidar said further delays occurred as the board sought access to research from its predecessor—many of whom were no longer in public service.
The government has also engaged with the International Labour Organization (ILO) for technical assistance. The ILO has proposed a two-phase review process: the first involves data collection, currently being carried out by the Maldives Statistics Bureau, while the second phase includes a comprehensive impact assessment.
“We’re working to ensure the revised wage takes into account the needs of workers while also considering economic stability,” the Minister assured.
Current minimum wage rates in the Maldives are:
-
MVR 4,500 per month for small businesses
-
MVR 7,000 per month for medium-sized enterprises and civil service roles
-
MVR 8,000 per month for large businesses
MP Mauroof also raised concerns over the loophole that allows employers to hire foreign workers exempt from minimum wage protections. In response, Dr Haidar confirmed that the issue is being reviewed and will be addressed during the ongoing consultation process.
The government aims to finalize the revised wage framework by the end of this year, bringing it into alignment with both domestic legislation and international best practices.
