Bill to overturn mandatory enrolment of expatriate workers in pension scheme, passed

The parliament has passed a bill seeking to overturn the mandatory enrolment of expatriate workers in the pension scheme.

This amendment to the Pension Act was passed with 37 votes in favour, 7 votes against, and 7 abstentions.

The bill was submitted to parliament on behalf of the government by Maavah MP Abdul Azeez Jamal Abubakuru.

Article 12 of the Maldives Pension Act requires employers to enrol all employees, Maldivians and foreigners alike, in the retirement pension scheme. This requires employers to pay 7 percent of employee salaries to a pension fund.

The amendment bill argues that the majority of expatriate workers will move overseas to retire and thus, including expatriate workers defeats the purpose of the scheme.

The amendment will be enforced from the day it is ratified by the president and published on the Government Gazette.