The revision of the Maldives’ national minimum wage is underway and expected to be completed by the end of this year, according to Minister of Higher Education, Labour and Skill Development, Dr Ali Haidar Ahmed.

He made the announcement during a parliamentary sitting, responding to Kendhoo MP Mauroof Zakir’s question about the delay in the review.

As per regulations, the national minimum wage, first set on November 8, 2021, must be revised every two years, with the next review due in November 2023. However, the Minister noted that the previous administration failed to initiate the process within the required timeframe.

Following the change in administration, labour responsibilities were moved from the Ministry of Economic Development to the Ministry of Higher Education, Labour and Skill Development. A new Minimum Wage Advisory Board was formed in July 2024 and held its first meeting in September. The board, supported by the International Labour Organization (ILO), has been working on the review.

Delays arose due to the loss of technical experts from the previous board, making it difficult to access past research and institutional knowledge. To address this, the current board sought previous documentation and partnered with the ILO to ensure continuity and technical guidance.

The review is being carried out in two phases. The first phase involves collecting key data, including the labour force survey, household income and expenditure data, national productivity figures, and census information. The Maldives Bureau of Statistics is currently conducting the labour force survey, expected to be completed by December 2025. The second phase will assess the economic impact of the revised minimum wage.

According to the Ministry, the new wage levels will be set with consideration for broader economic implications, aiming to balance worker protection with economic stability.

The current national minimum wage rates are MVR 4,500 per month for employees in small businesses, MVR 7,000 for those in medium-sized enterprises and civil service roles, and MVR 8,000 for workers in large businesses.

During the session, concerns were also raised about the exclusion of expatriate workers from minimum wage protections, which has contributed to a preference for hiring foreign labour. The Minister confirmed that this issue would be reviewed as part of the ongoing consultations and wage revision process.