Minister of Economic Development Fayyaz Ismail has announced the government has approved a USD 291 as minimum wage. Minister Fayyaz signed the order to set the minimum wages for various sectors at a special ceremony.
On October 4, the Minimum Wage Advisory Board concluded its final report to be presented to the economic minister on the recommended minimum wage allocation in the Maldives, in accordance with the sixth amendment to the Employment Act. In its report, the advisory board allocated minimum wages for three different categories of businesses, as well as the civil service sector.
The board initially decided on a minimum wage of USD 369 per month for small enterprises, where an employee works 8 hours per day. However, the minimum wage for small enterprises has been reduced to USD 291. For medium-level enterprises and civil servants, the minimum wage was allocated as USD 453.
Additionally, the advisory board initially set the minimum wage for large businesses at USD 576, but the amount has been reduced to USD 518.
Speaking at the announcement ceremony, Minister Fayyaz said the minimum wages for the various sectors was approved after taking into account the current economic situation due to the COVID-19 pandemic. He said it will take two more years for the country's economy to return to normal and that he expects the minimum wage to benefit both employees and businesses.
The government estimates USD 32 million will be spent next year for the implementation of the minimum wage and harmonising of salaries.