Minister of Finance Ibrahim Ameer has revealed the basic salaries of 22,378 civil servants are below USD 415.
Discussing the minimum wage report forwarded by Ministry of Economic Development, the finance minister told the Parliamentary Committee on Economic Affairs the expenditure on wages and pension would increase to USD 240 million when a minimum wage is established. The minister said only 478 from 44,838 civil servants are allocated a basic salary of more than USD 415. The minister noted those staff are working in Public Service Level 7 and above.
Furthermore, the finance minister said establishing a minimum wage will change the salary structure of state-owned enterprises (SOEs), resulting in an increase in the capital injection from the state budget. The minister also stated this is not the right time to establish a minimum wage in the Maldives, as the country is in an economic crisis following the impact of the COVID-19 pandemic.
Speaking regarding the minimum wage bill, the finance minister said before the minimum wage is established the economy needs time to recover to the level it was prior to the pandemic. As such, citing economic projections, he noted 2022 would be the ideal year to implement a minimum wage in the Maldives.