Minimum wage to come into effect by end of 2021

The Parliament’s Economic Committee has approved of amendments to the Employment Act of the Maldives that will designate sectors in which a minimum wage is to be set, which will then be implemented before the end of 2021. 

The amendments were proposed by MP for Kendhikulhudhoo Ahmed Easa and were evaluated by a joint committee comprising of the Parliament’s Economic Committee and the Committee on Social Affairs.

The Committee amended the bill so that minimum wages are set in nine sectors. 

They are: 

• Fisheries industry
• Tourism industry
• Construction industry
• Transport industry
• Health industry
• Education industry
• SME businesses
• Information Technology industry
• Maritime industry

The orders for a minimum wage are to be issued by the relevant Minister on the advice of the minimum wage board. The first such order must be implemented before the end of 2021 according to the bill. 

The board is tasked with advising the adequate amount for a minimum wage and should be issued by the Minister within 30 days.

The situation of employees and the necessary needs of their families, as well as economic factors and the sufficiency of the nation, must be considered when deciding on a minimum wage.