Economic Committee to pass its minimum wage recommendations on March 11

The Parliament’s Economic Affairs Committee, on Monday, passed to finalize its recommendations in response to the request for guidance made by the Economic Ministry regarding setting a national minimum wage, on March 11 at the latest.

Economic Minister had previously promised to declare a minimum wage before the end of February.

The Economic Ministry had sent the Salaries and Wages Advisory Board’s recommendations regarding a minimum wage, along with a request for the view of the Parliament regarding the recommendations, in mid-February.

The Economic Affairs Committee, which has been charged with a review of the Board’s recommendations, convened for a meeting on Monday to decide on a deadline to make its decision.

At the meeting, committee member, Dhuvaafaru MP Ismail Ahmed said stressed that the committee needed to expedite its review and finalize a decision as soon as possible. He presented a motion that the deadline be set to March 11.

“This is a huge research. This has come to us after consultation with multiple parties. I therefore don’t find there’s room for much work on our end,” said Ismail.

Ismail’s motion was seconded by North Fuvahmulah MP Mohamed Rasheed. He, too, said that the Board’s report was very detailed, and that summoning more people for consultation would be a waste of time and effort.

‘The Local Council Elections is ahead. We need to finalize a decision before that,” said Mohamed Rasheed.

The majority of ruling Maldivian Democratic Party (MDP) parliamentarians at the committee spoke in favor of expediting a decision.

North Thinadhoo MP Abdul Mughnee, however, said that the committee must still do its due diligence. He said that the committee must not rush into a decision without necessary consultations.

Mughnee said that it therefore required the opinion of other parliamentarians, outside of the committee, and presented a motion to delay finalizing a decision until March 25.

Mughnee’s motion was supported by opposition parliamentarians, who said that the Board’s report had several worrying aspects which required further clarification.

“It won’t be right if, after declaring a minimum wage, we abolish it three months later, citing coronavirus. It’s our wish that we summon and consult with both employers and employees, that we inform everyone, before completing this work,” said Naifaru MP Ahmed Shiyam, the deputy leader of main opposition party Progressive Party of Maldives (PPM).

Of the two motions, the first motion to be called to vote was Ismail’s motion, that the deadline be set to March 11. Of the eight committee members present at the meeting, only four MDP parliamentarians voted in favor of the motion. Mughnee and the three opposition parliamentarians chose to abstain.

Committee chair, Alifushi MP Mohamed Rasheed Hussain (Bigey) broke the deadlock by voting in favor setting the deadline to March 11, but with the option of extending the deadline, if necessary.

“We will conduct this work properly. By consulting with all necessary parties. If this isn’t done by March 11, the committee will hold a discussion and extend the deadline. We will send this out of here after a thorough review, and with the most accurate information possible,” said Bigey.

Salaries and Wages Advisory Board, formed under Employment Act, is empowered to conduct consultations and research into setting a national minimum wage, and advising the Economic Minister regarding the subject.

And Section 59 (a) of Employment Act empowers the Economic Minister with the authority to issue orders to declare, amend or terminate a minimum wage following review of the advice of the board.

The Board, following months of research and evaluations into setting a minimum wage in Maldives, recommended that the national minimum wage be set to MVR 6,400, and that an amount within the range of MVR 6,400 to MVR 8,600 be set as minimum wage for civil servants and tourism sector employees.

The Board recommended that the minimum wage should be applicable to the basic salary, and that the minimum wage should apply to both foreign workers – after a moratorium period of one to two years - and local workers in order to eliminate discrimination and offer protection to workers from all industrial sectors of the Maldivian economy from within the minimum wage system.

It has also recommended that the rates be reviewed once every five years.