Fine for failure to deposit salaries of migrant workers deferred to July

Ministry of Economic Development has made the decision to defer application of the fine on failure of employers to deposit salaries of migrant workers to their bank accounts to July.

Article 4 of the Regulation on Issuance of Salary by Employers - formed under Employment Act – requires salary and allowances of migrant workers to be deposited to a bank account in their name opened in a Maldivian bank.

And according to the regulation, employers that fail to comply can be fined MVR 10,000 – MVR 50,000.

The fine was scheduled to take effect on January 1, but the regulation was revised and application of the fine deferred to July 1 by the Ministry of Economic Development last Monday.

Application of the specific fine has been deferred on multiple occasions.

Application of the fine, under Article 7 (d) of the Regulation on Issuance of Salary by Employers – established in 2016, was originally scheduled to take effect on April 1, 2017.