President of the Minimum Wage Wage Advisory Board (MWAB) Mariyam Khalida has stated this is not the right time to establish a minimum wage in Maldives.
Speaking at a forum organised by the parliament to seek public opinion on establishing a minimum wage, the head of the advisory board said the widely spreading coronavirus, COVID-19, is affecting the global economy. She further said COVID-19 is also likely to impact the Maldivian economy given the dependency on tourism.
Suggesting it is best to hold off establishing a minimum wage, Khalida called on the parliament to take into consideration the effects of minimum wage on the economy before determining it now. She said the board has carried out research into how minimum wage is set in other countries, in addition to evaluating the living condition, salary and regular expenditure of common people in Maldives.
A cross-comparison of needs and expenditure of people living in the capital and islands were also done before proposing a minimum wage in Maldives. The board also evaluated how the minimum wage will impact employers.
Considering both the welfare of employers and employees, the board proposed USD 415, which is the average of the lowest monthly minimum wage of USD 266 and a need-based value of USD 558. Although the need-based value was USD 558, the board understood it cannot be affordable to the employers.
President Ibrahim Mohamed Solih constituted the Minimum Wage Advisory Board on May 1, 2019 and the board began efforts to determine a minimum wage in June 2019. The board submitted its report to Ministry of Economic Development in December last year.