Unions urge reversal of reduced remittance limits

The Maldives Trade Unions Confederation (MTUC) has called for the restoration of the monthly remittance limit for foreign workers in the Maldives, following a recent reduction imposed by banks.

In a statement issued on Friday, the MTUC expressed concern over the decision to lower the remittance ceiling from USD 400 to USD 150, noting that the change would directly affect the livelihoods of foreign workers and their families who rely on these funds.

The confederation said the policy change comes amid ongoing stagnation in the supply of US dollars in the banking system, as well as a widening gap between the official exchange rate and the black-market rate.

According to the MTUC, the reduction makes it more difficult for foreign employees to meet basic living expenses. It also noted that most of the working population in the Maldives consists of foreign nationals, the majority of whom are paid in Maldivian Rufiyaa rather than foreign currency.

“These workers’ families depend entirely on the remittances they send home. Considering these challenges, the confederation calls on the relevant authorities to reconsider this decision — either by reinstating the USD 400 limit or by introducing a policy that does not place an additional burden on foreign workers,” the statement read.

While the MTUC did not identify specific banks in its statement, the State Bank of India (SBI) and several regional banks operating in the Maldives are known to have reduced their remittance limits.

Most foreign workers in the Maldives come from Bangladesh, India, Sri Lanka, and Nepal.

Several Maldivian teachers have also voiced concern over the banks’ decision. One teacher wrote on social media that the government should find a solution that supports foreign teachers who play a key role in the education sector.