The World Bank has approved additional financing of USD 21.6 million to further help the Maldives mitigate the economic impact of the COVID-19 crisis on poor and vulnerable workers and their families.
The additional financing will be utilized to expand the existing COVID-19 Emergency Income Support Project, which was approved by the World Bank’s Board of Executive Directors in June 2020 with funding of USD 12.8 million. World Banks expects the funding will help finance the extended duration of the government’s COVID-19 Income Support Allowance scheme by continuing to provide temporary support of up to USD 320 per month to workers who have lost their jobs or income as a result of the COVID-19 pandemic.
Since its launch, the COVID-19 Emergency Income Support Project has played a significant role in protecting the livelihoods of vulnerable workers in Maldives. As of November 2020, about USD 10.3 million had been disbursed as income support allowance to some 17,000 workers who had either been laid off or whose income had been impacted by the COVID-19 crisis.
In addition to providing a temporary cash relief to struggling workers, the COVID-19 Emergency Income Support Project will strengthen the government’s capacity to better manage future shocks. Under the project, administrative systems are being enhanced to give a greater role to local councils in helping people across the country access support.
A new unemployment insurance programme, along with a far-reaching national social protection framework, is also being formulated to help soften the blow on both employers and employees in future emergencies. Additionally, the existing retirement pension scheme and other similar programmess are being reviewed to benefit future generations of Maldivians.
The COVID-19 Emergency Income Support Project is implemented by the Ministry of Economic Development with support from the National Social Protection Authority (NSPA) and Maldives Pension Administration Office (MPAO).