Minimum wage to expats to be delayed indefinitely

The government presented a new bill that proposes to delay the minimum wage for expats working in the Maldives indefinitely.

The amendments brought to the Employment Act concerning “minimum wage” states that foreign individuals will be subject to minimum wage, two years from the date of ratification of the amendment.

Kulhudhuffushi constituency MP, Jamsheed Mohamed, with the government’s endorsement, proposed a bill that proposes to delay the minimum wage to expats indefinitely. He claimed that, despite being approved to take effect in two years, the current tides of the economy and global market does not allow for minimum wage regulation for expats.

Jamsheed stated that the bill aims to make the decision to set minimum wage for expats based on the economy and financial capabilities of the country rather than setting a timeframe. The bill also stated that the minimum wage should be decided based on the advice of Minimum Wage Advisory Board on a date decided and declared by the Minister.

Minimum wage is the total remuneration offered to employees including their basic salary and definitive monthly allowances. Therefore, allowances such as overtime, Ramadan Allowance and Service Charge is not included within minimum wage.