Understanding Employment Norms in Maldives: A Comprehensive Guide
Tarmack LogoRequest a demo
HP Top Banner

Hiring Talent And Managing Payroll In Maldives

Get Started

Hiring in Maldives? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Maldives.

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.
Maldives map

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


  • 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

Onboarding Process

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.


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)

Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services

Learn More
Minimum Wage

Minimum Wage

The minimum wage in Maldives is MVR 3,100 per month.
Payroll Cycle

Payroll Cycle

The payroll cycle in Maldives is usually monthly. It depends on the employment agreements and can be weekly or bi-weekly for temporary employees.
Annual Bonus

Annual Bonus

Employees in Maldives generally receive a 'Ramzan bonus'. There is no other mandatory annual bonus.
Health Benefits

Health Benefits

  • 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

Working Hours and Overtime

  • 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.


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 2023)

The following are the public holidays for the calendar year 2023. Some dates may vary according to official notifications and traditional calendars.
  • New Year's Day (1 January)
  • First day of Ramazan (23 March)
  • Eid-ul-Fithr (22 April)
  • Eid-ul-Fithr holiday (23 and 24 April)
  • Labor Day (1 May)
  • Hajj Day (28 June)
  • Eid-ul-Al'haa (29 June)
  • Eid-ul-Al'haa holiday (30 June and 1 July)
  • Islamic New Year (19 July)
  • Independence Day (26 July)
  • National Day (16 September)
  • Prophet Muhammad's birthday (27 September)
  • The Day Maldives embraced Islam (17 October)
  • Victory Day (3 November)
  • Republic Day (11 November)

If you structure your global talent acquisition strategy well, you will definitely enhance your talent quality and availability through a distributed workforce. Tarmack offers end to end recruiting services to help you achieve this.

Schedule Consultation
Social Security

Social Security

Maldives has different social security schemes that cover different aspects of social security. Some of these are
  • Retirement Pension Scheme (mandatory contributions by the employer and employee)
  • Health Insurance Scheme
  • Disability Allowance
  • Food Subsidy
  • Destitute Assistance
  • Single Parent Allowance
Contributions towards social security are discussed in the following sections.
Taxes for Employers

Taxes for Employers

Employers are required to contribute a minimum of 7% of the employee's gross salary towards the mandatory Retirement Pension Scheme.

Did you know that as a part of the Employer of Record service, Tarmack offers global payroll across 100+ countries? Not just that, we even offer this global payroll service on a standalone basis. So if you're looking for a payroll provider for one or more countries, you're at the right place.

Learn More
Taxes for Employees

Taxes for Employees

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.


The probation period in Maldives can be for up to 3 months.

Ready to convert your contractor to a full time employee?

Every now and then, that contractor you hired does such a good job that you want to hire them as a full time employee. Convert such contractors into your full time employees by using Tarmack's Employer of Record service. Doesn't matter where the contractor is. Our service covers 150+ countries around the globe!

Talk To Us


  • 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

Severance Pay

The severance pay must be at least 3 months' salary.
Employees or Contractors

Employees or Contractors

  • 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

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.

A truly global HR platform with everything you need to build, grow & manage a global team.

  • bestTalentIdentifying & recruiting the best talent
  • payrollPayroll with full compliance across 100+ countries
  • agreementsEmployment agreements as per local laws
  • contractorContractor invoices & time management
  • onboardingSmooth remote onboarding of employees
  • immigrationImmigration & mobility services around the world
Find Out More