State announces advisory board to establish minimum wage

President Ibrahim Mohamed Solih has established the Salaries and Wages Advisory Board which will assist Ministry of Economic Development in establishing a minimum wage in Maldives.

Minister of Economic Development, Fayyaz Ismail requested President Solih to establish the board in December, 2018.

In a tweet on occasion of Labor Day being celebrated this Wednesday, President Solih said that it was “with great pleasure” that he announced the establishment of the board.

May Day aa dhimaakoh masaikaiy kuraa muvazaffunah musaaraige gothugai dheveyne emme kuda minvaru kandaelhumahtakai Economic Development Minister ah lafaa dhevvumah “Musaara Aai Ujoora Aa Gulhey Gothun Lafaa Dhey Board” mi adhu ekulavaalumakee alhugandah libunu varah bodu ufaleh.

— Ibrahim Mohamed Solih (@ibusolih) May 1, 2019

Minister Fayyaz took to Twitter to say that the board was established after broad consultations and research, and that he was confident of producing a fair result via the board.

The President has today instituted the first Salaries and Wages Advisory Board to advise on a minimum wage after carrying out broad consultations and research. It is composed of 5 members 2 each from Industry n Workers reps and 1 from GoM. I am sure we can achieve a fair result.

— Fayyaz Ismail (@faya_i) May 1, 2019

WHAT IS THE SALARIES AND WAGES ADVISORY BOARD?

The President is required to establish the Salaries and Wages Advisory Board via Employment Act, which says that a board on salaries and wages must be established to advise Minister of Economic Development regarding to oversee the affairs of employees at various businesses and other workplaces, and advise the Minister regarding establishment of a minimum wage at the workplaces.

The law empowers Minister of Economic Development to evaluate the advice provided by the Salaries and Wages Advisory Board and issue orders as to establish, revise or annul minimum wages for each field of work.

Such orders can define the hourly wage or salary rate, the hourly wage or salary rate for specific duties, and the rate for overtime.

Employment Act required the Salaries and Wages Advisory Board to review the minimum wage every two years.

Establishment of a minimum wage in Maldives was one of President Solih’s electoral pledges.