Employers told to open bank accounts for expats before new salary rule

The Homeland Security Ministry has urged employers to open bank accounts for their foreign employees as soon as possible, ahead of a new requirement making salary payments through bank accounts mandatory.

Regulations governing the employment of foreign nationals in the Maldives were amended in August to require employers to deposit salaries into bank accounts held in the names of their foreign employees.

The requirement will take effect from 25 September.

Under the amended regulations, salaries payable to foreign employees under their employment contracts must be deposited into accounts opened in the employees’ names at banks registered with or licensed by the Maldives Monetary Authority (MMA).

In an announcement on Monday, the ministry called on all employers to complete the process of opening bank accounts in the names of their foreign employees as soon as possible.

The ministry also said that in cases investigated by the Labour Relations Authority concerning salaries of foreign employees, a salary will be considered as having been paid only if it has been deposited into the employee’s own bank account at a bank registered with or licensed by the MMA.

The measure forms part of amendments made last month to regulations governing the employment of foreign nationals in the Maldives.

The ministry said further information can be obtained through its 1485 hotline or by email.