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Asia

Maldives

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Employer of Record (EOR) in Maldives

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Maldives Introduction

Maldives is an archipelagic state located in southern Asia, located in the Indian Ocean. It is made up of a chain of 26 atolls, making it the smallest country in Asia. Tourism is their largest industry, accounting for 28% of GDP and 60%+ of Maldives' foreign exchange receipts.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 60 days of paid maternity leave, which has to be taken starting at least 30 days before the due date. The employer can decide whether to pay the employee's salary during this leave. Fathers are entitled to 3 days of paid paternity leave. After maternity leave, the employee can take 1 year of unpaid leave.

Sick Leave

Employees can take up to 30 days of paid sick leave each year, and 10 days to take care of a sick relative.

Paid Leave

There are 8 public holidays in Maldives, and employees can take 30 days of paid time off each year, after working at a company for 1 year. Employees can also receive leave for family obligations.

Wage Requirements and Working Hours

The minimum wage in Maldives is around MVR 3,100 per month. The standard workweek is 48 hours with 1 day off per week (typically on Friday). Overtime is paid at 125%-150% of the regular wages.

Termination Process

Process

Employment contracts can be terminated by either party without giving notice during the probationary period. Employers are able to terminate an employee without cause if keeping the employee would be damaging to the company or the workplace, and with cause of wrongdoing such as theft, fraud, or breach of contract.

Notice Period

If applicable, the notice period for dismissing an employee is determined by how long the employee worked at the company, ranging from 2 weeks to 2 months.

Severance Pay

There is no legal provision in the law regarding severance payments.

Additional Information

N/A

OVERVIEW
Language(s):
Dhivehi
Currency:
Maldivian Rufiyaa (MVR)
Capital City:
Malé
Population:
524,000
Cost of Living Rank:
38th
VAT (Valued Added Tax):
6%
Employer TaxES
7%
(estimated)

★  7% - Pension Scheme

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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How Remofirst employs in Maldives

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Maldives get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Maldives are paid on time in Maldivian Rufiyaa (MVR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Maldives, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.