Amendments to regulations governing foreign employment in the Maldives have eased financial burdens for thousands of small and medium-sized enterprises (SMEs), allowing eligible businesses to be exempt from paying quota fees for up to 20 expatriate workers.

The changes, published in the Government Gazette on 1 April, took effect immediately and are implemented through the Expat System. Under the revised rules, SMEs can now benefit from quota fee exemptions when hiring foreign workers, providing significant cost relief.

The amendment follows concerns raised by businesses during a meeting held on 17 December 2025 between President Dr Mohamed Muizzu and representatives of small and medium enterprises. The decision forms part of measures announced by the Government to support and strengthen SMEs, with implementation beginning from 1 January.

With this change, more than 30,000 SMEs are expected to benefit from reduced quota-related costs. Previously, businesses were required to pay an annual fee of MVR 2,000 per expatriate worker under the quota system.

The regulation also includes safeguards to prevent misuse. Businesses operated by shareholders, responsible parties, or partners are not eligible for repeated or unfair access to these exemptions. Additionally, user guidelines outlining procedures for employers will be made available through the Expat System.

The Government stated that these measures aim to address long-standing issues within the system over the next two years, while enhancing the role of SMEs in the national economy.