Employee benefitsin the Maldives

Husnuvaa Aasandha is the government-financed healthcare scheme for Maldivian nationals. A valid national identity card or passport card gives access to covered doctor-prescribed care at public facilities, including inpatient and outpatient treatment, diagnostics, surgery, pregnancy care, optical services, mental health therapies and specified fertility treatment. Approved medicines are available through participating pharmacies. Citizenship, rather than employment, provides access, so eligible self-employed people can use the scheme too. Foreign workers need separate health cover.

Employers must enrol migrant workers in health insurance after the required medical screening. This covers a different population from the government healthcare scheme for Maldivian nationals. The insurance contract determines treatment, provider access and financial limits; a wider employer medical plan can add protection beyond the required migrant cover.

Some employers fund private medical cover for employees and extend access to family members. Dhiraagu describes medical coverage for staff and families; resort employers also advertise comprehensive medical insurance. The employer’s policy sets eligible dependants, treatment, insurer network, employee contributions and claim limits. For foreign staff, additional private cover must be distinguished from the required migrant insurance.

Some employers provide workplace fitness and recreation facilities rather than a cash wellbeing allowance. Vakkaru Maldives lists a staff gym, recreation lounge and staff social activities; Dhiraagu supports employee recreation and social events. Access, location and any charges follow the employer’s policy.

The Maldives Retirement Pension Scheme invests contributions in an individual retirement savings account. Local employees aged 16 to 65 and their employers must participate. The usual minimum is 7% of pensionable pay from the employee and 7% from the employer each month. Pensionable pay normally means the basic salary stated in the employment contract; where the contract does not properly identify that basis, the regulation can require total remuneration and allowances instead. Employers may pay the full 14% without deducting the employee share. Pension normally starts at age 65; qualifying early withdrawal is available from age 55. Foreign employees are not compulsorily enrolled.

Some employers increase their share of retirement saving. Dhiraagu’s 2025 financial statements disclose a 10% employer pension contribution with employees contributing at least 4% of salary. This company arrangement funds more of the combined contribution from the employer than the usual 7% employer share. Employees should check the pensionable salary definition and deduction in their own employment agreement.

Some employers give employees discounts on their products or access to credit schemes. Dhiraagu provides discounted digital services and advertises staff product discounts and credit arrangements. Any credit is repayable under its agreement; a staff discount is a reduction in a purchase price rather than an unrestricted cash allowance.

Employees receive 30 days of paid annual leave after completing a year of employment. The employer sets the start date after consultation, no later than 12 months after the year in which the entitlement arose. Employees must be free from work during the leave; maternity leave, sick leave and termination notice cannot be absorbed into it. A normal working day declared a public holiday during annual leave gives an extra leave day. Unused entitlement must be paid on dismissal; exchanging ordinary annual leave for cash while employment continues is prohibited.

Employees receive at least 30 days of paid sick leave in each employment year. A licensed medical practitioner’s certificate must normally identify the illness and recommended leave and be submitted on the first day back. Up to 15 of the 30 days may be taken without a certificate when each absence lasts no more than 2 consecutive days. The entitlement is an employment-year allowance rather than an assumed calendar-year reset.

Employees receive 10 paid days a year for important family obligations, including caring for a sick family member. This is separate from their own sick leave, annual leave and birth-related leave.

An employee receives 5 days of paid leave when a child is circumcised. The leave begins on the date of the circumcision.

Some employers sponsor eligible employees’ Hajj-related expenses. Hajj is the Islamic pilgrimage to Mecca. Dhiraagu identifies this sponsorship in its 2025 benefits policy. The employer sets eligibility and covered expenses; sponsorship does not itself establish paid pilgrimage leave or a nationwide travel allowance.

A pregnant employee receives 60 days of maternity leave on a licensed medical practitioner’s certificate showing the expected birth date. Up to 30 of those days may fall before the expected delivery; starting 30 days before birth is not compulsory. Salary continues on the usual payday and contractual rights, benefits and service for promotion are protected. A further 28 days must be allowed if a doctor certifies that the mother or baby’s ill health prevents a return; the employer may leave that extension unpaid. Return is normally to the same position, with statutory rules for positions that disappear or cannot be resumed.

A male employee receives 3 days of paid leave when his child is born. The leave starts on the date of birth. Employer policies may offer a longer period, but the general Employment Act baseline remains distinct from State employee and individual employer enhancements.

After maternity leave ends, the mother or father may take up to 1 year of unpaid leave. Where both parents work for the same employer, they may divide the leave between them according to their preference. This protects time away from work and does not provide salary replacement.

On returning from maternity leave, an employee receives 2 paid breaks of 30 minutes each working day to care for the child. The March 2026 amendment extends the period of eligibility until the child reaches 2 years of age. The breaks must not reduce pay and are additional to the ordinary break entitlement.

Some employers improve the private-sector maternity baseline. Dhiraagu’s 2025 policy provides 60 working days of paid maternity leave per pregnancy, compared with the national entitlement expressed as 60 days. It also supports return from parental leave through flexible schedules where business requirements permit. The employer policy’s working-day basis matters when comparing the package with the statutory minimum.

Some employers extend paid leave for fathers beyond the statutory 3 days. Dhiraagu’s 2025 policy grants 7 calendar days of paid paternity leave per birth. The employer’s eligibility and application rules govern the enhanced allowance.

Working normal hours on a statutory public holiday attracts an additional amount of at least half the minimum wages earned on a normal working day, in addition to overtime. Overtime on Friday or a public holiday pays 1.5 times hourly salary, subject to statutory exemptions. A public holiday falling on a day the employee would normally work during annual leave gives an extra day of annual leave. Friday is included in the Employment Act’s public-holiday definition; the March 2026 amendment also adds International Labour Day.

Each Maldivian employee is entitled to an employer-paid Ramadan allowance of MVR 3,000 before Ramadan begins. Payment to Muslim expatriate workers is at the employer’s discretion. This is a fixed statutory allowance for local employees; it is separate from a discretionary performance bonus.

Tourism businesses must add a service charge of at least 10% to services and distribute the proceeds equally among employees who contribute directly or indirectly to service delivery. The employer may retain at most 1% of the service charge collected for administration. The previous month’s share must reach staff before the end of the following month. Businesses outside tourism may collect a service charge voluntarily; employees should distinguish this variable distribution from basic pay and a performance bonus.

Performance bonuses commonly form part of employee compensation in Maldives. The award amount depends on the employer’s scheme and performance rules. As a telecommunications example, Dhiraagu provides an annual performance bonus to permanent employees who completed probation during the year; its careers material advertises bonuses up to 4 times monthly salary. That upper limit is an individual employer example, separate from the fixed statutory Ramadan allowance.

Some employers recognise staff contributions through awards. Dhiraagu includes recognition awards in its employee offering. The employer defines who can be nominated, the form and value of the award and when recognition occurs; this is separate from salary-linked performance bonuses.

Meal support commonly forms part of employee compensation in Maldives. Employers may provide a cash allowance or staff meals. Resort examples include accommodation-and-meal packages and a dedicated team dining facility. The employment package determines meals included, employee charges and whether support continues on days off.

Transport support commonly forms part of employee compensation in Maldives. It can take the form of a commuting allowance or employer-arranged transfers. For example, Vakkaru Maldives advertises complimentary return transfers to Malé for staff. A transfer between an island workplace and the capital is a distinct benefit from a daily urban commuting budget; the employer’s policy sets routes, frequency and eligibility.

Housing support commonly forms part of employee compensation in Maldives. It may be paid as a housing allowance or provided as staff accommodation; Kuredhivaru Resort & Spa, for example, includes accommodation in its advertised employee package. The employment agreement determines room type, sharing arrangements, utilities, any employee payment and the conditions for continued occupancy. Housing assistance should be distinguished from legal duties applying to foreign-worker accommodation.

Some employers let employees adapt work schedules for education, parenting, caregiving or medical needs. Dhiraagu’s flexible-work policy covers these circumstances and supports a transition back after parental leave, subject to business requirements. Its 2025 report records 17 staff applications for flexible arrangements. That count relates to applications at Dhiraagu and does not describe approvals.

Some employers fund structured learning through internal workshops, external qualifications and online courses. Dhiraagu uses performance reviews and departmental objectives to build an annual training plan. Its 2025 report records an average 21 training hours per employee; that is a retrospective company result rather than an annual entitlement or a nationwide training allowance.

Some employers fund home-country travel for expatriate employees. Dhiraagu reimburses expatriate travel home, while Kuredhivaru Resort & Spa advertises a return flight with annual vacation under company policy. Eligibility, destination, booking process and reimbursement limits are set by each employer. An annual home-leave ticket is separate from legal return arrangements when employment ends.

Employee protections attach to the actual working relationship. The Employment Act’s employer definition includes users of non-independent contractors, so labelling a worker a contractor does not by itself remove employee protections. A genuine independent business should set its fees, invoicing and any client-funded support in a service agreement; employee annual leave, paid family leave and employer pension contributions should not be assumed to apply automatically.

Employers must provide a written employment agreement identifying the employee, employment type and start date, pay and benefits, salary calculation and payday, leave, discipline, appraisal and termination arrangements. A signed copy belongs with the employee. A written job description must normally be provided within 1 month of starting. Contracts may be indefinite, fixed term or for specified work; fixed terms cannot exceed 2 years and renewals or continuing permanent duties can turn them into indefinite employment.

Employees must be paid at least monthly. Temporary day-to-day workers are normally paid daily unless the parties agree weekly, fortnightly or monthly payment. Employers must issue a statement showing pay, deductions and their reasons. At the end of employment, outstanding pay must be settled within 7 days. Service-charge payments follow their own monthly distribution deadline.

The Minimum Wage Order applies to workers other than expatriate employees. Private micro enterprises are exempt; small enterprises pay at least MVR 21.63 per hour, medium enterprises MVR 33.65, and businesses outside those size categories MVR 38.46. Other covered employers pay MVR 21.63. The public-sector floor is MVR 33.65 per hour, subject to MVR 7,000 monthly for permanent staff working at least 30 hours weekly. Basic salary and fixed allowances can count, while overtime, Ramadan allowance, service charge, variable or seasonal allowances, bonuses and benefits in kind cannot.

Employees must have at least 30 minutes for a meal before working more than 5 consecutive hours; they must not be required to work through the meal. Each prayer period allows 15 minutes for prayer without disrupting work. If that prayer break is not provided, a 15-minute break must follow 4 consecutive hours. Meal arrangements for the statutory exempt employee groups are agreed with the employer.

Normal working time is limited to 48 hours a week, excluding paid overtime. Employees must generally receive 24 consecutive hours of rest after 6 consecutive working days. Agreements at tourist resorts, tourist vessels and uninhabited industrial islands can accumulate rest days at one day for every 6 days worked. Those workplaces may also use 2 extra hours daily, paid as overtime. Statutory exemptions include senior managers, emergency work, on-call duty, vessel or aircraft crews and mosque employees.

Overtime pays 1.25 times the employee’s hourly salary on an ordinary working day and 1.5 times on Friday or a public holiday. The higher rate does not automatically apply to Saturday and Sunday simply because another country treats them as a weekend. Overtime requires agreement; the national rules include exemptions for specified employee groups, including senior management.

An employment agreement may set probation of no more than 3 months. Either party may end employment during that period without prior notice. Probation does not remove the employee’s statutory working-time, leave, remuneration or applicable minimum-wage rights.

Employee withholding tax is calculated on remuneration, including taxable cash and non-cash benefits, after subtracting the employee’s pension contribution. Monthly bands are 0% up toMVR 60,000,5.5% on the part above 60,000 to 100,000,8% above 100,000 to 150,000,12% above 150,000 to 200,000 and 15% above 200,000. Annual individual taxable-income thresholds areMVR 720,000,1.2 million,1.8 million and 2.4 million at the same marginal rates. A benefit’s specific exemption or valuation rule must be checked before payroll treats it as tax free.

Maldives uses goods and services tax, a consumption tax rather than an employee payroll contribution. The general-sector rate is 8%; tourism-sector supplies are taxed at 17% from 1 July 2025. Self-employed businesses should assess registration and the applicable supply category before invoicing; neither rate automatically reduces an employee’s gross salary.

A foreign employee must arrive with a valid Entry Pass linked to a Work Permit. The employer or authorised representative must obtain the electronic Work Visa through the Xpat online system within 15 days of arrival. Only the approved electronic visa is valid; passport visa stickers ceased to be valid after 23 November 2025. Visa validity follows the work permit and renewed work visas have a maximum 1 year validity. Medical screening and health insurance are separate migrant-worker requirements.