Employment Law

Maldives Employment Contract

Technically, in the Maldives, an employment contract can be oral or written, but we strongly recommend that you always use a written employment contract when hiring. These formal contracts should include details such as wages, working hours and responsibilities, and any other relevant information. They should be written in the local Dhivehi language and use the Maldivian rafia currency.

Fixed Term

Indefinite Contract

Maldives Working Hours

A typical working week in the Maldives is 40 to 48 hours, five days in total.

Holiday Policy

Maldives Vacation

Employees in the Maldives are generally entitled to 30 days of paid leave per year.

Maldives Sick Leave

Employees in the Maldives are entitled to sick leave compensation after being absent from work for two consecutive days due to illness.

Maternity and Paternity Leave in the Maldives

Female employees in the Maldives are entitled to 60 days of paid maternity leave.

Employee Severance Pay and Termination of Contract in the Maldives

In most cases, employers in the Maldives are required to provide notice of termination. The mandatory minimum notice period varies depending on the employee's length of service, but is usually between two weeks and two months. Severance packages are less common, but top employees often receive severance packages.

Maldives Tax Laws

Personal income tax in the Maldives is progressive, ranging from 0% to 15% depending on income level.

The corporate tax rate in the Maldives is 0% (for companies with annual profits below MVR 500,000) or 15% (for companies with annual revenue above MVR 500,000). Some other companies (such as banks) may have different tax rates.

Health Insurance in Maldives

Healthcare in the Maldives is state-funded in many cases, but private health insurance is still commonly used and may be expected of employees.

Salary and Benefits

Compensation Law in the Maldives

The minimum wage in the Maldives is currently (2020) RAF 3,100 per month, but this may increase in 2021.

Welfare Management in the Maldives

As a foreign employer, setting up the Maldivian benefits system can be difficult. The law is complex, the bureaucratic process can be slow, and legislation can change regularly, all of which can make it a very time-consuming process.

Outsourcing your benefits administration processes ensures you fully understand and follow the rules, ensuring your compliance and significantly speeding up the process. At Remoly, our Maldives employment experts will help you find and arrange your benefits, advise on your strategy, and ensure compliance with the law.