Employer in Maldives

An employer establishes the employment relationship through a written Employment Agreement for each employee. The agreement identifies the parties, employment status, start date, pay and benefits, payment calculation, payday, leave, disciplinary rules, performance appraisal and dismissal terms. The employer gives the employee a signed copy and provides a written job description. A definite-term agreement may last up to two years. Probation may last up to three months. A Training Agreement must exist before training begins; on-the-job training may last up to six months, pays 70% of the applicable minimum wage and cannot include a training fee. The employer pays salary at least monthly, while temporary workers are generally paid daily. Final payments are due no later than seven days after dismissal or the end of the contract. The Minimum Wage Order applies only to non-expatriate employees: the hourly rates are MVR 21.63 for micro businesses, MVR 33.65 for small businesses and MVR 38.46 for large businesses and other employers outside the MSME categories. Basic salary and fixed allowances count toward the minimum wage; overtime pay, service charge, bonuses and benefits in kind do not. The employer displays the order at the workplace. Employee Withholding Tax is calculated on monthly gross pay after the Maldives Retirement Pension Scheme deduction, and the return and payment are generally due by the 15th of the following month. Employee withholding tax and non-resident withholding tax are separate obligations. For Maldivian employees aged 16 to 65, the Maldives Retirement Pension Scheme, or MRPS, is compulsory. The employer contributes at least 7% and the employee at least 7% of pensionable wages or basic salary. Enrolment begins when employment starts, including during probation, and covers part-time, contract and daily-wage workers. The employer submits contributions and payment by the 15th of the following month. Late payment can incur MVR 100 plus 0.5% per month. Foreign employees may join voluntarily when the employer participates and agrees to contribute. Employers retain employment records for at least six years and use Koshaaru and the MIRA portal where the relevant filings apply. Working time generally cannot exceed 48 hours per week, and an employee cannot work more than six consecutive days without 24 hours of rest. Tourism resorts, vessels and uninhabited-island workplaces have a special rest-day arrangement: rest may be accumulated, with up to two additional hours per day worked as overtime. Employers keep records of normal hours, overtime and overtime pay. Work exceeding five hours requires at least a 30-minute meal break, and employees receive a 15-minute prayer break during prayer time. Overtime is paid at 1.25 times the normal rate and at 1.5 times the rate on Fridays and public holidays. Work on a public holiday also attracts at least an additional half-day minimum payment. An employer cannot require work at a worksite, island or vessel outside working time without the applicable legal basis. After one year, an employee earns 30 days of paid annual leave and should use it within the following 12 months. The employer cannot require work during paid annual leave and pays unused leave when dismissal occurs. Sick leave is at least 30 days per year; up to 15 days may be taken without a medical certificate when the absence lasts no more than two consecutive days. Paid maternity leave is 60 days, with a possible additional 28 days for medical reasons, and the employee generally returns to the same job unless the lawful alternative-job exception applies. After returning, the 2026 amendment provides two 30-minute childcare breaks per day until the child is two years old; the current amendment and Gazette take priority over older English consolidations that state one year. Paid family-responsibility leave is 10 days, paternity leave is three days and circumcision leave is five days. International Labour Day is a public holiday. The employer applies non-discrimination rules and cannot dismiss an employee because of nationality, religion, sex, pregnancy, disability, illness or injury, exercise of rights under the Employment Act, workers' association activity or a complaint. The employer carries the burden of proving a lawful cause and good faith. Redundancy can arise from the end of a business or service, operational change or financial decline under the applicable regulation. The ninth amendment in 2026 changes notice and termination procedures and expands payment in lieu, so older notice periods should not be applied in isolation. The employer provides final dues within seven days and supplies a performance record when requested within six months. The employer provides a safe workplace without charging employees for it. This includes safe tools, machinery and materials, personal protective equipment, training and instructions, hazard and health checks, medical care and first aid. An employee may refuse work where there is a reasonably founded serious danger to health or life. The employer reports a death or injury requiring treatment beyond first aid within 48 hours. Employee accommodation standards apply where the employer provides accommodation. The Occupational Safety and Health Act and its 2024 regulations, including regulation R-103 and amendment 68/R/2026, govern workplace safety under supervision by the Labour Relations Authority and the responsible ministry. Employees and employers can form and register trade unions under the Industrial Relations Act 1/2024. The Registrar of Unions, the Tripartite Advisory Board and the Industrial Dispute Resolution Division support that framework. A workplace dispute can move from internal discussion or the employer's grievance process to a complaint, inspection, investigation or mediation by the Labour Relations Authority and then to the Employment Tribunal. A dismissal complaint generally has a three-month deadline. The Labour Relations Authority complaint form covers wages, overtime, allowances, fundamental rights, contract terms, leave and the working environment. In tourism businesses in Maldives, the employer collects and distributes at least a 10% service charge to employees who provide direct or indirect service. The employer may retain no more than 1% for administration, pays the previous month's amount by the end of the current month and keeps monthly records of income, recipients, entitlement and payment. The employer reports the service-charge information to the Labour Relations Authority and MIRA twice a year. A breach can lead to a fine of up to MVR 50,000; failure to collect or distribute the charge can lead to a fine of up to MVR 100,000 and administrative action. The Employment Act applies to Maldivian and foreign employees. An employer hiring a foreign worker also follows quota, permission and work-permit rules. A permanent quota pool is linked to a registered business entity and an active project site, requires Job Center registration, allows one pool per division, normally takes about 14 working days to process and costs MVR 2,000 per slot under the applicable schedule. A work permit costs MVR 350 per month and the employer is liable for that fee. The entry pass and work permit must be arranged before entry, and the employer or authorised representative submits the Work e-Visa through the Xpat Online System within 15 days after arrival. Since 23 November 2025, only an approved e-Visa is valid. The 2026 amendment authorises a possible exemption from quota fees for MSMEs, so the current eligibility rules should be checked before hiring.