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Maldives

Basic Economic Summary

Overview

Known for its world-class beaches and touristic views, Maldives is a popular destination for most travelers seeking to find leisure and luxury. The country’s rich aquatic resources have been the main source of its economic success. In fact, the tourism and fisheries sector makes up for 40% of their GDP.

It goes without saying that their tourism industry has been the main provider of employment for their local workers, with an estimated number of 50,000 people working in resorts. Maldives’ success becomes a testament to the level of skill that their employees have to offer in the hospitality industry.

Basic Information

  • Local Languages: English, Dhivehi, French, German
  • Capital: Malé
  • Currency: Maldivian Rufiyaa (MVR)
  • Population: 540,985 (2022)
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 8300.00 USD (2022)
  • Exchange Rate (MVR/USD): 0.065 USD 
  • PISA Ranking (2018): Information not available
  • Number of University Graduates (2019): Information not available

Salary Data

Average Salary of Jobs (Per Month)

Job Title Average Salary (in MVR) Average Salary (in USD)
Accountant MVR 8,130 - MVR 27,300 USD 528 - USD 1773
Software Engineer MVR 9,170 - MVR 27,700 USD 596 - USD 1753
Data Analyst MVR 9,400 - MVR 26,900 USD 611 - USD 1747
Sales Manager MVR 15,200 - MVR 49,700 USD 987 - USD 3227
Project Manager MVR 11,200 - MVR 31,400 USD 727 - USD 2040

More information about average salaries in Maldives can be found here.

Talent Sourcing Tips

Taxes

Employer Payroll Tax

There is no employer payroll taxes in Maldives.

Employee Income Tax

Annual Income Group (in MVR) Income Tax
0 - 60,000 0%
60,000 - 100,000 5.5%
100,000 - 150,000 8%
150,000 - 200,000 12%
Above 200,000 15%

More information on income tax can be found here.

Minimum Wage & Payroll

Minimum Wage

The minimum wage is in the Government sector for Maldives MVR 3,100 monthly in the government sector. There is no minimum wage in the private sector

Payroll Cycle

The payroll cycle followed is monthly. 

Bonus

13th month salary

Employees are entitled to a bonus of one-third of his monthly salary for the Ramadan and this is to be paid before the beginning of Ramadan.

Working Hours & Statutory Leave

Working hours

The working hours are usually limited to a 48 hrs week over a 6 days work week with a day’s off per week.

Overtime pay

If an employee is working overtime on a normal weekday, he is entitled to an remuneration at 1.25 times the normal hourly wage rate. In case of working on a friday or a public holiday, the employee is entitled to an hourly remuneration of 1.5 times the normal hourly rate.

Public Holidays

The list of public holidays in Maldives can be found here.

Leave

Annual Paid Leave

All employees who have worked for a minimum of one year in the same organisation are entitled to a paid annual leave of 30 days.

Sick Leave

Employees are entitled up to 30 days of paid sick leave.The employer is obliged to grant two or more consecutive days of sick leave if the employee is successful to produce a medical certificate issued by a medical practitioner specifying the nature and period of the illness.

Parental Leave

  • Maternity Leave

Female employees are entitled to 60 days of paid leaves in the event of giving birth to a child. The paid leave starts not before 30 days from the estimated date of giving birth. Incase of ill health of the mother or the baby and this being certified by a medical practitioner, an employee is further entitled to additional 28 days of leave. The payment of this additional leave period is upon the discretion of the employer.

  • Paternity Leave 

A male employee is entitled to 3 days of paid leave for the birth of his child which can start from the day of the delivery of the child

Offboarding & Termination

Termination Process

The employer can terminate the employment contract either by giving a notice or making a payment in lieu of notice. The employee can also terminate the contract by giving a notice to the employer.

Notice Period

The employee may only be dismissed after giving a written notice. In the event of an employee’s work ethic being deemed unacceptable, the employee may be dismissed without a notice period.

Incase the contract is silent about the notice period, the following is followed:

Contract Period Notice Period required before employment expires
6months - 1 year 2 weeks or more
1 year - 5 years 1 month or more
5 years or more 2 months or more

Severance Pay

An employee working for less than one year in the same organisation is eligible to receive a severance package of one month’s notice or payment in lieu of the same. Whereas if an employee is working in the same organisation for 1 - 4 years, he is eligible to receive a three month notice period or payment in lieu of the same.

Probation period

The employment agreement can specify no more than 3 months of probation period as the .

Insurance

Employers and employees in Maldives are obliged to participate in the Retirement Pension Scheme that their government has enacted. Their contributions must be stipulated in the employment contract and must outline mandatory requirements from the pension act. Both parties must allot 7% of the wages as their contribution to the social security scheme. 

Moreover, the government of Maldives has also set a universal healthcare scheme that aims to provide affordable and accessible healthcare for their people. The Husnuvaa Aasandha, which is largely funded by their local government, has established many health care facilities within the country and has served the needs of Maldivian nationals. 

VAT

The general VAT in Maldives is 6%

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