Lawmaker suggests amounts within the range of MVR 4,000 to MVR 8,000 as minimum wages

Hulhudhoo MP Ilyas Labeeb, on Monday, said the government had opinioned minimum wage can be set for three business categories, and suggested ranges for minimum wages in the three categories.

Ilyas Labeeb has submitted an amendment to the Employment Act on behalf of the government, designed to detail the framework for minimum wage declaration on the Act, and to strengthen other employment related provisions on the Act.

Ilyas Labeeb said that while the Employment Act established that a minimum wage may be declared in the country, the failure to declare a minimum wage was due to lack of detailed guidelines on the Act relating to the subject.

“Therefore, one on the primary purposes of this bill is to establish in clear terms how minimum wage must be established, and detail the provision,” he said.

He announced ranges for minimum wages in three categories, but said the exact amounts will be settled on during the debate.

• Category A: MVR 8,000 to MVR 8,500
• Category B: MVR 6,000 to MVR 6,500
• Category C: MVR 4,000 to MVR 4,500

Ilyas Labeeb said the bill will undergo revisions in light of the opinions expressed by parliamentarians during the debate, as well as consultations with technical experts and employers and employees during the committee stage.

Speaking during the debate, Hulhumale’ MP Ali Niyaz said that all employers must be distributed into three categories, and that separate minimum wages must be set for each of the three categories.

He suggested that the minimum wage for Category A be set to MVR 8,000, minimum wage for Category B be set to MVR 6,000, and minimum wage for Category C be set to MR 4,000.

The Minimum Wage Board, which conducted a review into setting minimum wage, had advised to set MVR 6,400 as the national minimum wage, and to settle on a separate minimum wage within the range of MVR 6,400 to MVR 8,000 for civil servants and tourism sector employees.

Declaring a minimum wage had been one of President Ibrahim Mohamed Solih’s electoral pledges. The Minimum Wage Board was established under Presidential decree on Labor Day 2019.