From onboarding to payroll management, Tarmack’s EOR services make hiring in Maldives fast, compliant, and cost-effective.
Employment Norms in Maldives
Maldives or the Republic of Maldives is an archipelago state in South Asia located in the Indian Ocean. Primarily known for tourism, the country is looking to improve the business landscape. While the employment norms are friendly, they may seem complex for potential employers. EOR services handle employee management and ensure legal compliance.
General Information:
- The currency of Maldives is Maldivian Rufiyaa (MVR).
- Male is the capital of Maldives.
- Dhivehi is the official language of the Maldives. Documentation can be in Dhivehi to be considered legally valid. English and Arabic are widely spoken in the Maldives.
- As of 2021, the of Maldives was reported to be USD 5.41 billion.
The Labor Relations Authority (LRA) regulates all employment norms. The Employment Tribunal is responsible for resolving labor-related issues.
Table of Contents
- Agreements
- Onboarding Process
- Visa
- Minimum Wage
- Payroll Cycle
- Annual Bonus
- Health Benefits
- Working Hours and Overtime
- Leaves
- Social Security
- Taxes for Employers
- Taxes for Employees
- Probation
- Termination
- Severance Pay
- Employees or Contractors
- Final Words
AgreementsOnboarding ProcessVisaMinimum WagePayroll CycleAnnual BonusHealth BenefitsWorking Hours and OvertimeLeavesSocial SecurityTaxes for EmployersTaxes for EmployeesProbationTerminationSeverance PayEmployees or ContractorsFinal Words
Agreements in Maldives
- Employment agreements can be for a work-specific term, fixed term or indefinite term. Fixed-term agreements can be for a maximum of 2 years.
- The employment agreement must be in writing. The agreement must be in Dhivehi or a translation in Dhivehi must be provided for all legal purposes.
- The agreement should include all mandatory points such as the nature of employment, payday, termination clauses, bonus, etc.
Onboarding Process in Maldives
While there is no mandatory onboarding process, the following are some common practices -
- The employee must be given a copy of the employment agreement.
- The employer must enroll the employee with relevant tax and social security authorities.
- The employee must be made aware of the company policies and common practices.
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Visa in Maldives
Work Visa:
- The employer must apply on the employee's behalf.
- The following are some of the requirements for a work visa in Maldives.
- Copy of work permit
- Passport (valid for at least 1 year)
- Medical health certificate
- Receipt of the submission of work visa application
- Yellow fever vaccination (required in some cases)
- Other requisite application documents
Business Visa:
- A temporary multiple-entry visa with a stay period of up to 30 days is granted. The visa is valid for 90 days.
- The following are the requirements for a business visa.
- Purpose of visit
- Medical health certificate
- Letter from the company stating the employment status and competency of the applicant
- Round-trip air tickets
- Bank statement
- Hotel confirmation details
- Yellow fever vaccination (required in some cases)
Minimum Wage in Maldives
The minimum wage in Maldives is MVR 3,100 per month.
Payroll Cycle in Maldives
The payroll cycle in Maldives is usually monthly. It depends on the employment agreements and can be weekly or bi-weekly for temporary employees.
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Annual Bonus in Maldives
Employees in Maldives generally receive a 'Ramzan bonus'. There is no other mandatory annual bonus.
Health Benefits in Maldives
- Citizens of Maldives receive annual medical coverage from the government. However, private healthcare is considered better.
- Employers may provide private health insurance to their employees.
Working Hours and Overtime in Maldives
- Work hours: Employees can work for a maximum of 48 hours per week with an 8-hour work day.
- Break: At least a 30-minute break is to be provided for 5 consecutive hours of work. In addition to this, a 15-minute prayer break is to be allowed such that work is not disrupted.
- Overtime: An overtime of not more than 2 hours per day is permissible. The pay for overtime hours is 1.25 the regular pay. The pay is 1.5 the regular pay for overtime on Fridays or public holidays.
Leaves in Maldives
Sick leaves
- Employees are entitled to up to 30 days of paid sick leave. A medical certificate is mandatory if the leave is for more than 15 days.
Parental leaves
- Maternity leave: Female employees are entitled to 60 days of fully paid maternity leave. The employer must pay the salaries as usual during the leave. An additional 28 days of unpaid leave can be taken for reasons such as ill health.
- Paternity leave: Male employees are granted up to 3 days of paid paternity leave to be taken right after childbirth.
- Parental leave: Parental leave of 1 year can be taken by either the mother or the father.
Family leave
- Up to 10 days of family leave is granted to care for family members.
Annual leaves
- Employees who have worked for at least one year are entitled to a paid annual leave of 30 days.
Public Holidays (for the Calendar year 2024)
Some dates may vary based on official notifications and traditional calendars.
- New Year's Day - 1st January
- First Day of Ramazan - 10th March
- Eid-ul-Fitr - 10th April
- Eid-ul-Fitr Holiday - 11th and 12th April
- Labor Day - 1st May
- Hajj Day - 17th June
- Eid-ul-Adha - 17th June
- Eid-ul-Adha Holiday - 18th and 19th June
- Islamic New Year - 7th July
- Independence Day - 26th July
- National Day - 16th September
- Prophet Muhammad's Birthday - 15th September
- The Day Maldives Embraced Islam - 17th October
- Victory Day - 3rd November
- Republic Day - 11th November
Public Holidays (for the Calendar year 2025)
Some dates may vary based on official notifications and traditional calendars.
- New Year's Day - 1st January
- First Day of Ramazan - 23rd February
- Eid-ul-Fitr - 10th March
- Eid-ul-Fitr Holiday - 11th and 12th March
- Labor Day - 1st May
- Hajj Day - 7th June
- Eid-ul-Adha - 7th June
- Eid-ul-Adha Holiday - 8th and 9th June
- Islamic New Year - 17th July
- Independence Day - 26th July
- National Day - 16th September
- Prophet Muhammad's Birthday - 27th September
- The Day Maldives Embraced Islam - 17th October
- Victory Day - 3rd November
- Republic Day - 11th November
Taxes for Employers in Maldives
Employers are required to contribute a minimum of 7% of the employee's gross salary towards the mandatory Retirement Pension Scheme.
Taxes for Employees in Maldives
Income tax:
The following are the income tax brackets in Maldives.
- Up to MVR 720,000 - 0%
- MVR 720,000 to MVR 1,200,000 - 5.5%
- MVR 1,200,000 to MVR 1,800,000 - 8%
- MVR 1,800,000 to MVR 2,400,000 - 12%
- Above MVR 2,400,000 - 15%
Social tax:
Employees are also required to contribute a minimum of 7% of the employee's gross salary towards the mandatory Retirement Pension Scheme. Currently, foreign employees may contribute to the scheme voluntarily. Additional contributions are voluntary.
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Probation in Maldives
The probation period in Maldives can be for up to 3 months.
Termination in Maldives
- Employees can only be dismissed for just causes such as -
- Bad work ethics
- Unskilled work
- Failure to fulfill work responsibility
- The notice period is -
- 2 weeks for an employment period of 6 months to 1 year
- 1 month for an employment period of 1 to 5 years
- 2 months for an employment period of more than 5 years
- The employment can be terminated without a notice period by providing the employee with the salary and other compensations for the notice period.
Severance Pay in Maldives
The severance pay must be at least 3 months' salary.
Employees or Contractors in Maldives
- Employers and contractors are different entities in Maldives. Contractors do not enjoy the benefits that are given to employees such as the pension scheme.
- Misclassification would be seen as an evasion of employment laws and may lead to fines for the employer.
Final Words
The Maldives has primarily fishing, shipping and tourism industries. The country is constantly looking to develop and improve existing infrastructure which can make it a good destination for business. EOR services handle employee payroll, benefits, management and more leaving employers to focus on their business goals.
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Social Security in Maldives