Jihad: If a minimum wage is set, competitiveness would be lost

Finance Minister Abdulla Jihad has said that if a minimum wage for employees is set, the competitiveness would be lost.

Responding to the questions of the budget committee on how to gain income from the 2016 budget of MVR 27.457, Minister Juhad said that the Government, at this point, does not have a thinking to set a minimum wage for employees.

Minister Jihad said that if the Government sets a minimum wage, employers would be forced to pay the minimum wage no matter how careless the worker is.

“The Government has not moved on the minimum wage issues yet. If it is set, our competitiveness would be lost. That is, they would be forced to play that amount. No matter how careless the worker gets, the place of employment would be forced to give minimum wage.” Finance Minister Jihad said.

Minister Jihad said that if the Government decides on a minimum wage, it would affect the productivity of the state. He said that the Government has left the matter on the hands of the businessmen and if a businessman wants, he can give the highest salary possible.

“In no place in the world there is a minimum wage set for state employees or government jobs alone. If a minimum wage is set, it would be for the entire country. It has not done for the Government alone.” Minister Jihad said.

Finance Minister Jihad said that no job with the government is below MVR 4000 or 5000.

MP for Kimbidhoo constituency, Abdulla Riyaz who inquired about minimum wage said that the inflation of the country is going up day by day. And he said that while the rent of housing is going up beyond reach, the lack of change in the wage of the employees is a concern of the public. He said that the Employment Law states to set a minimum wage but it is not implemented.