Minister of Economic Development Fayyaz Ismail has stated the government will set a minimum wage for employees soon.
Implementing a minimum wage is one of the key pledges of President Ibrahim Mohamed Solih.
Economic Minister Fayyaz said the Maldives has a low unemployment rate but the current wage for employees is too low. Minister Fayyaz said implementing a minimum wage is a huge step in allowing employees to be paid fairly for their work and that he expects that the minimum wage will be announced soon despite the current economic situation.
Minimum Wage Advisory Board has recommended the economic ministry to set a minimum wage of USD 415. However, President of the Minimum Wage Advisory Board Mariyam Khalida previously stated it was not the right time to implement a minimum wage and that the government should take into consideration the effects of what the minimum wage would have on the economy.
The board conducted cross-comparisons of needs and expenditure of people living in the capital and the atolls and evaluated how the minimum wage will impact employers before proposing a minimum wage in the Maldives. Considering both the welfare of employers and employees, the board proposed USD 415, which is the average of the lowest monthly minimum wage of USD 266. The board also proposed a need-based value of USD 558 but stated it was not affordable for employers.