The Maldives has set minimum wage in a historic milestone for the island nation.
The minimum wage was announced by Economic Minister Fayyaz Ismail at a special ceremony held at Hotel Jen today.
The Ministry said that for small businesses a minimum wage of MVR 4,500 has been set with MVR 21.63 as the hourly rate. This is MVR 500 less than what the Minimum Wage Board had recommended to the Economic Ministry.
The Ministry said that for medium businesses a minimum wage of MVR 7,000 has been set and that the hourly rate for such businesses is MVR 33.65.
As for large businesses, the Economics Ministry decided on a minimum wage of MVR 8000, which is MVR 900 less than the board's recommendation.
In the presentation, the Ministry said that setting a minimum wage would reduce the wide wage disparity in the economy and promote inclusive growth as well as increase labor force participation rate and encourage discourage workers and voluntary unemployed people to join the labor force.
The Ministry further said that this increases labor productivity, job retention, and efficiency in the long term while also increasing domestic demand and stimulating growth.
