The government has amended its employment regulations to mandate that all salaries payable to expatriate workers must be deposited directly into bank accounts opened in the employee’s name at financial institutions registered with the central bank.
This policy change has been enacted through the 3rd Amendment to the Regulations on Employment of Foreigners in the Maldives. The new clause legally obligates employers to deposit the contracted salaries of all foreign workers into bank accounts opened under the employee’s name at banks registered with or licensed by the Maldives Monetary Authority (MMA).
While previous amendments to the Employment Act had introduced fines for employers who failed to deposit expatriates' salaries and allowances into Maldivian bank accounts, the collection of these penalties was eventually suspended. A major hurdle at the time was the inability of undocumented foreign workers to open bank accounts. Historically, the legal mandate to deposit wages into local bank accounts was also designed to facilitate the collection of the state’s remittance tax—a levy on money sent abroad by foreign workers.
Beyond tax collection, the latest regulatory update is part of an extensive government effort to integrate foreign workers into the national legal framework and safeguard their labour rights. The government also hopes the measure will stabilise the local currency market. Currently, systemic issues exist where some foreign workers are paid in US Dollars while others receive Maldivian Rufiyaa (MVR). This disparity has contributed to the illicit sale of dollars on the black market and forced MVR-earning workers to purchase foreign currency at inflated rates.
In effect since December last year, the Regulation on the Employment of Foreigners outlines the legal procedures for recruiting foreign workers, granting residency permits, and maintaining overall labour standards in compliance with the Maldives Immigration Act and the Employment Act.
Under these overarching regulations, employers may only recruit a foreign national after advertising the vacancy on the government’s Job Center portal to ensure no suitable Maldivian candidate is available. Additionally, once a foreign worker arrives in the Maldives, a formal employment contract must be drafted, signed by both parties, and a copy delivered to the employee within a maximum of 45 days.