The government has submitted amendments to the Employment Act of Maldives seeking to grant authority of establishing a minimum wage to Minister of Economic Development. The bill was submitted on behalf of the government by Parliamentarian Ahmed Easa.
Establishing a minimum wage in Maldives is an electoral pledge of President Ibrahim Mohamed Solih. The amendment proposed to the Employment Act does not specify an amount as the minimum wage. However, the authority to establish a minimum wage has been granted to the economic minister.
The amendment also proposes establishing a Minimum Wage Advisory Board to survey business establishments and its staff. The board established by the president must comprise of 11 members and appointments to the board must be made within 30 days of the ratification of bill.
Meanwhile, several sectors such as fisheries, agriculture, construction, tourism, transportation, education, health and small and medium sized businesses are to be referred before establishing a minimum wage. Furthermore, the amendment notes the minimum wage must be revised every two years.
The amendment stated the minimum wage must be established by a circular issued by the economic minister within 30 days following advisory and research from the board. The minimum wage must define the amount per hour, amount per sector and overtime. Should the employer violate or refuse to follow any order by the board or the ministry, a fine of at least USD 323 would be imposed on such employers.