The Maldives is known for its world-class beaches and touristic views, making them a popular destination for most travellers seeking leisure and luxury. The country's rich aquatic resources have been the primary source of its economic success. The tourism and fisheries sector makes up 40% of their GDP and has provided employment to as many as 50,000 local workers.
Malé, Fuvahmulah, Hithadhoo
Tourism And Hospitality, Manufacturing, And Agriculture
Residents in the Maldives are taxed on their worldwide income. Worldwide income for residents in the Maldives is any income they receive overseas. Examples can be income from investments abroad.
However, non-resident individuals and temporary residents will only be taxed on their income earned in the Maldives.
The resident income taxes are as below
The government of the Maldives has made it mandatory for all employers and employees to enroll with their local social security. As laid down in Section 12 from The Pension Act, this must be done by both parties involved-the employer as well as any employee working thereon behalf or company who contravenes these regulations will face severe consequences including fines up until imprisonment.
The employer must state that they will provide a retirement plan in their employment contract.
The social security contribution to the Maldivian Retirement Pension Fund is as below
The statutory benefits that an employer must provide to employees in the Maldives include
Employers must pay for overtime work done by employees. This includes overtime pay –
The employer is required by law in the Maldives to contribute towards social security.
All the leaves mentioned in the sections above must be provided to employees. Statutory leaves must be mentioned clearly in the employment contract.
Service charges are a way for employers to cover the costs of hired help. They may be paid either directly or indirectly, and can include any third-party fees like commissions that an employee receives in addition their salary from you.
The employee is entitled to charge a fee for the services they provide. This could include any third-party fees, commissions or costs that are incurred by them while working directly with your company as well.
Commonly provided fringe benefits in the Maldives are –
Exempt benefits in the Maldives only include insurance premiums contributed by an employee.
Malaysia's lack of availability in stock options is becoming increasingly prevalent as businesses worldwide grow more accepting.
A common form of long-term incentive in the Maldives is performance-based compensation or appraisals.
The employer can terminate the employment contract either by giving a notice or making a payment in lieu of notice. The employee can also terminate the contract by giving a notice to the employer
Notice period in Maldives will be based on the mutual agreement between the employer and employee.
An employee working for less than one year in the same organization is eligible to receive a severance package of one month's notice or payment in lieu of the same. Whereas if an employee is working in the same organization for 1 - 4 years, they are eligible to receive a three-month notice period or payment in lieu of the same.
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