Invest in the Maldives

Employment

Applicable Laws
Local and foreign businesses are subject to the following specific laws and regulations with respect to duties and obligations as an employer in the Maldives. These legislations and regulations govern matters such as employee recruitment, types of employment contract, disciplinary action, dismissal, remuneration and minimum statutory rights available to employees.

• Employment Act (Law Number 2/2008) (including the five amendments made to the Act);
• Salary Enforcement Regulation (Regulation Number 2016/R-98);
• Regulation on Employing Foreigners in the Maldives (Regulation Number 2011/R-22);
• Income Tax Act (Law Number 25/2019) (provisions relating to employee withholding tax); and
• Employment Agency Regulation (Regulation Number 2016/R-21).

Further, there are a number of decisions where the Employment Tribunal and courts have interpreted important statutory provisions related to procedures that employers must comply with, especially when taking disciplinary action, dismissing employees and dealing with employment disputes.

 
Minimum Wage

There is no statutory minimum wage. The Government is currently working on setting a minimum wage within this year. The proposed minimum wage is MVR 30.77 per hour.

 
Foreign Employees

1. All foreign employees working in the Maldives will receive the rights and protections available to local employees (save for some provisions which, among other things, include, Ramadan allowance and Maldives Retirement Pension Scheme) under the Act.
2. Regulation on Employing Foreigners in the Maldives governs matters relating to work permits of foreign employees in the Maldives.
3. Employers employing foreign employees must obtain “Quotas” from the Ministry of Economic Development prior to those employees entering the Maldives.