Minister of Finance Ibrahim Ameer has stated this is not the right time to implement minimum wage in the Maldives, as the country is in an economic crisis.
Speaking at a meeting with the Parliamentary Committee on Economic Affairs, Finance Minister Ameer said the state is currently under a lot of economic stress due to the COVID-19 pandemic. In this regard, the minister noted the main source of state income has been blocked, while the state is undertaking large expenses for economic relief efforts. He added state debt has also increased significantly amid the COVID-19 crisis.
Speaking on the minimum wage bill, the finance minister said the economy needs time to recover to where it was prior to the pandemic, before implementing minimum wage. As such, he noted 2022 would be the ideal time to implement minimum wage in the Maldives, according to economic projections.
During the meeting, Minister Ameer shared details of the findings from the research carried out by the ministry and the National Pay Commission. The minister noted state expenditure on wages and pension would increase to USD 240 million upon implementing minimum wage, which is not included in the 2020 State Budget. He also noted funds sent abroad as remittance would significantly increase, as expatriates would also be included under the minimum wage policy.
During the meeting, members of the parliament committee also expressed this is not the best time to implement minimum wage in the Maldives as the country is in an economic crisis. The members noted implementation of minimum wage this year would carry the risk of further loss of jobs.