Ministry of Finance has revealed over USD 20 million has been disbursed as income support allowance following the COVID-19 pandemic.
The government introduced a monthly income support allowance of USD 323 as compensation to cover the essential expenses of individuals whose employment has been negatively affected by the COVID-19 pandemic. Statistics published by finance ministry showed USD 20.6 million has been disbursed to 18,199 individuals, as of March 12.
The income support allowance is provided for individuals who have been either dismissed or suspended from their jobs without pay, as well as employees who have been sent on no-pay leaves and employees whose monthly wages have been reduced below USD 323.
Delivering the Presidential address 2021, President Ibrahim Mohamed Solih detailed why the income support allowance had to be introduced. As such, the President noted the Maldives was relatively one of the worst affected economies due to COVID-19 with the average citizen struggling to pay rent and bills during this economic downturn. He said had the government not intervened in aid of distressed citizens, and small and medium sized enterprises, it would have had a destructive impact on the country.
Further, the President said the aim of the income support allowance was to prevent businesses going under, to help manage the daily affairs of those whose employment status had been affected and to ensure social protection for families.