Guide to employment, payroll and benefits in

Maldives

Rivermate offers complete payroll, benefits and compliance services for

Maldives

01. Overview

Last updated: 

August 19, 2021

Currency
Maldivian Rufiyaa
Capital
Male
Ease of doing business
53.3
Language
Maldivian
Population
540544
GDP growth
6.91%

02. Grow your team in

Maldives

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Maldives

, particularly if you don't have established local relationships. You can hire employees in

Maldives

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Maldives, officially the Republic of Maldives, is a small archipelagic state in the Indian Ocean in South Asia. It's about 700 kilometers from the Asian continent's coastline, southwest of Sri Lanka and India. From Ihavandhippolhu Atoll in the north to Addu Atoll in the south, a chain of 26 atolls extends. The Maldives, with a land area of about 298 square kilometers and a population of around 557,426 people, is one of the world's most geographically scattered sovereign states, as well as the smallest Asian nation by land area and the second least populated country in Asia. The Maldivian Archipelago is situated on the Chagos-Laccadive Ridge, a large submarine mountain range in the Indian Ocean that also forms a terrestrial ecoregion with the Chagos Archipelago and Lakshadweep. Malé is the capital and most populous area, historically known as the "King's Island" where ancient royal dynasties ruled due to its central position. The Maldivian Archipelago, which was consolidated as a sultanate in the 12th century and developed close commercial and cultural relations with Asia and Africa, is the world's lowest-lying region, with an average ground-level elevation of 1.5 metres above sea level and a highest natural point of only 5.1 metres. The area came under the increasing control of European colonial powers beginning in the mid-16th century, with the Maldives becoming a British protectorate in 1887. In 1965, the country gained independence from the United Kingdom, and in 1968, a presidential republic with an elected People's Majlis was created. The Maldives became a founding member of the South Asian Association for Regional Cooperation in the following decades, which saw political turmoil, democratic reform attempts, and environmental challenges faced by climate change. It also belongs to the UN, the Commonwealth of Nations, the Organization of Islamic Cooperation, and the Non-Aligned Movement. The Maldives' economy is classified as upper-middle income by the World Bank. Fishing has long been the most important economic activity, and it still is, led by the rapidly expanding tourism industry. Maldives scored "high" on the Human Development Index, with per-capita income slightly higher than other SAARC countries. Maldives was a member of the Commonwealth from July 1982 until October 2016, when it withdrew in protest of charges of human rights violations and failing democracy by other countries. The Maldives re-joined the Commonwealth on February 1, 2020, after demonstrating that democratic mechanisms and public support were in place.

04. Public holidays

05. Types of leave

Paid time off

After a year of continuous employment, employees are entitled to 30 days of paid leave. Employers are required to pay employees any earnings earned during their absence no later than the final working day prior to the leave.Prior to dismissal, the employer must pay out any accumulated but unused vacation time.

Public holidays

RamadanKuda EidEid-ul-AdhaIndependence DayNational DayProphet Muhammad’s BirthdayVictory DayRepublic dayThe Maldives also celebrates other variable festivals and public holidays as prescribed by the Government every year.

Sick days

Each year, employees are given 30 days of paid sick leave. An employee must present a medical certificate if he or she is away from work for more than two days due to illness. Employees are also entitled to ten days of paid leave to care for a sick relative.

Maternity leave

Female employees are entitled to 60 days of paid maternity leave, which must begin at least 30 days prior to the expected due date. If there are issues during pregnancy or childbirth, female employees might get up to an extra 28 days off. The company has exclusive choice over whether or not to pay the employee's wage throughout this prolonged vacation time. Female employees are provided two 30-minute paid breaks per day after returning to work after maternity leave to care for the kid until the kid is one year old.

Paternity leave

After the birth of a child, male employees are entitled to three days of paid leave. In addition, all employees are provided five days of paid leave for the circumcision of their child. Employees can take up to a year off following the birth of a child, but this time off is unpaid. The leave might begin after the mother's maternity leave has ended. Finally, employees are entitled to ten days of paid leave to attend to family obligations.

Parental leave

Other than the already mentioned terms for maternity and paternity leaves in Maldives, there are no other provisions regarding parental leave in the law.

Other leave

06. Employment termination

Termination process

Employment contracts in the Maldives can be canceled by either the employer or the employee at the conclusion of the contract period (if the contract is for a specified time). Both the employer and the employee have the right to terminate an employment contract without giving notice during the probationary phase. Employers may fire an employee without cause if retaining the employee would be damaging to the employer or the workplace, or for wrongdoing such as theft, fraud, or breach of contract. Employers must provide notice prior to terminating an employment contract outside of the notice period and in the absence of misconduct.

Notice period

The notice period for dismissing an employee, if applicable, is determined by the employee's length of service and ranges from two weeks to two months.

Severance pay

There are no provisions in the Maldives law regarding severance payment.

Probation period

The probation period cannot exceed three months in the Maldives.

07. Working hours

General

In the Maldives, the standard work week is 48 hours with one day off per week, which is typically Friday. Employees cannot be required to work more than six consecutive days without receiving 24 consecutive hours of rest.

Overtime

On a regular day, overtime is compensated at 125 percent of the regular wage. If the overtime is worked on a Friday or a federal holiday, the rate is 150% of the regular wage.

08. Minimum wage

General

For employees in the government sector, the minimum wage in the Maldives is currently 3,000 Maldivian rufiyaa per month.


The Maldives is well-known for its resorts, but there is currently no minimum wage for employees in that industry. Organizations and employees are fighting for a monthly minimum wage of 600 Maldivian rufiyaa.

09. Employee benefits

General

The Maldives features a health-care system that is open to all citizens.

There are presently 11 public holidays in the Maldives, and workers should be able to take those days off with compensation. Employees should be entitled to 30 days of paid annual leave after one year of service with your business.

Female workers may take up to 60 days of paid maternity leave if they obtain a medical certificate from a certified medical practitioner on the anticipated due date. The employee will not be able to take the leave until 30 days before the expected due date. If there is a problem or sickness after the delivery, the employee is entitled to an extra 28 days of leave. This additional leave needs a document from a qualified medical practitioner outlining the mother's or baby's health issues.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Maldives

to hire a team takes time, money, and effort. The labor law in

Maldives

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Maldives

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Maldives

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Maldives

via our Employer of Record / PEO solution.

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