Minimum wage review to be completed by Dec, minister says
Dr Haider emphasised that setting the minimum wage requires careful consideration to avoid unintended consequences for workers and employers.
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Higher Education Minister Dr Ali Haider has stated that the study to review the minimum wage in the Maldives will be completed by December 2025.
The minister was responding to questions from members of parliament regarding the delay in reviewing the minimum wage since it was first set on 8 November 2021. Under the Employment Act, the minimum wage is to be reviewed every two years, but no review has been conducted to date.
Dr Haider explained that when the current government assumed office on 17 November 2023, the review had not been initiated. He said that the formation of the Minimum Wage Board was resumed promptly, and a new board was established on 3 July 2024.
The board held its first meeting on 12 September 2024. Haider noted that the board needed time to retrieve relevant documents and research papers from the previous administration. He also said that many technical experts previously involved in the wage-setting process were no longer available, which had contributed to delays.
To resolve the matter, the ministry engaged the International Labour Organisation (ILO) for technical assistance. Discussions took place in November and December 2024, resulting in a jointly agreed proposal. The ILO submitted a technical note on 20 May 2025.
The proposal outlines a two-phase approach:
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A study to assess the implementation of the existing minimum wage.
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An impact assessment based on data from the study and a national labour survey conducted by the Bureau of Statistics.
Primary and secondary data collection for the first phase is currently underway. Once complete, the second phase will commence.
Dr Haider emphasised that setting the minimum wage requires careful consideration to avoid unintended consequences for workers and employers.
“This should be determined very thoughtfully and wisely based on the study. We are looking to complete the study by December this year,” he said.
The minimum wage, set by the previous government, is categorised as follows:
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Small businesses: MVR 21.64 per hour / MVR 4,500 per month
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Medium enterprises and government: MVR 33.65 per hour / MVR 7,000 per month
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Large enterprises: MVR 38.46 per hour / MVR 8,000 per month
