Maldives
Capital: Male
Currency: - MVR
Maldives Labor Law and Employment Policy Overview
Employment Law Overview
- Key Legislation:
- Employment Act (2008)
- Social Security Act (2010)
- Workmen's Compensation Act (2012)
- Legal Characteristics:
- Aims to protect employee rights and welfare
- Regulates minimum wage, working hours, leave, and termination of contracts
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Terms:
- Must include job description, remuneration, working hours, leave, and termination provisions
- Language and Currency:
- Contracts must be written in Dhivehi (local language)
- Currency used is the Maldivian Rufiyaa
Working Hours Regulations
- Standard Working Hours:
- 40 to 48 hours per week, over five days
- Rest Days and Breaks:
- One rest day per week
- 30-minute break after every four hours of work
Leave Policy
- Annual Leave:
- 30 days of paid annual leave per year
- Public Holidays:
- 17 statutory public holidays
- Special Leave:
- Sick leave: 30 days of paid sick leave per year
- Maternity leave: 60 days of paid maternity leave
- Paternity leave: 3 days of paid paternity leave
- Compassionate leave: 10 days of paid leave to care for a sick relative
Employee Severance and Termination
- Notice Period:
- Ranges from two weeks to two months, depending on years of service
- Severance Pay:
- Payment of wages and other benefits for the required notice period if no notice is given
- Unfair Dismissal Protection:
- Employers cannot dismiss employees without just cause
Taxation
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Personal Income Tax:
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Salary Range (MVR) Contribution Rate 0 - 720,000 0% 720,000 - 1,200,000 5.5% 1,200,000 - 1,800,000 8% 1,800,000 - 2,400,000 12% 2,400,000 and above 15%
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Social Security Contributions:
- 7% contribution from both employees and employers
Health Insurance
- Insurance Policy:
- Employees must participate in the national health insurance scheme
- Coverage:
- Basic healthcare services
Wages and Benefits
- Minimum Wage:
- MVR 3,100 per month
- Salary Structure:
- Monthly salary
- 13th-month salary (not mandatory)
Work Permits and Visas
- Permit Requirement:
- Foreign employees require a work permit
- Application Process:
- Employer applies to the Department of Immigration on behalf of the employee
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in the Maldives
- Common Provisions:
- Restricting employees from engaging in similar work after termination
- Protecting the employer's trade secrets
Training and Development
- Legal Requirements:
- Employers must provide safety training and skill enhancement training
- Government Support:
- Government provides training grants and programs
Workplace Diversity and Inclusion
- Legal Requirements:
- Discrimination based on race, religion, gender, or disability is prohibited
- Enforcement Measures:
- Employers must have policies and procedures in place to prevent discrimination
Remote Work Policy
- Legal Framework:
- No specific legal framework for remote work in the Maldives
- Tax and Insurance Implications:
- Tax and social security implications of remote work depend on the specific circumstances
Key Website Addresses
- Ministry of Employment, Maldives: https://www.employment.gov.mv/