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Employer of Record Maldives
Hire staff and expand your business in the Maldives with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in the Maldives designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in the Maldives. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in the Maldives takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Maldives
A Brief Guide to the Maldives
The Maldives, often termed as the “jewel of the Indian Ocean,” is an archipelagic nation renowned for its breathtaking coral reefs, pristine beaches, and clear turquoise waters. This paradisiacal country’s charm lies in its unspoiled natural beauty and rich cultural heritage, which extends from centuries-old traditions to vibrant culinary delights.
Category | Information |
Location | Indian Ocean, Southwest of Sri Lanka |
Capital City | Malé |
Official Languages | Dhivehi |
Area | Approximately 298 square kilometers |
Population | Approximately 550,000 |
Currency | Maldivian Rufiyaa (MVR) |
Major Cities | Malé, Addu City, Fuvahmulah, Kulhudhuffushi |
GDP | $4.94 billion (as of 2021) |
Major Industries | Tourism, Fishing, Construction, Shipping, Boat Building, Coconut Processing, Garments, Information Technology |
Business Culture
Business Culture in the Maldives
The business culture of the Maldives is heavily influenced by its unique blend of Islamic traditions and Asian politeness. Meetings often start with small talk and are generally less formal compared to Western standards, although punctuality is highly appreciated. English is commonly used in business communications, yet efforts to learn and use basic Dhivehi phrases are viewed favorably. The Maldivian business environment emphasizes relationships, hence building a strong network of contacts can significantly enhance your success.
Payroll and Taxes
Payroll and Taxes in the Maldives
Employee Taxation
In the Maldives, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (MVR) | Tax Rate |
Up to 720,000 | 0% |
720,000 – 1,200,000 | 5.5% |
1,200,000 – 1,800,000 | 8% |
1,800,000 – 2,400,000 | 12% |
2,400,001 and above | 15% |
Employer Taxation
Employers in the Maldives are also responsible for contributions towards an employee pension fund. The contribution rate is currently set at 7% of the employee’s salary.
Pension and Healthcare
Maldives Pensions
In the Maldives, the pension scheme is managed by the Maldives Pension Administration Office. The primary source of funding is from the contributions of employees and employers, with employers expected to contribute 7% and employees 7% of their pensionable wage. The country has both a mandatory retirement pension scheme and voluntary retirement pension schemes, providing a reasonable level of income security for retirees.
Healthcare in the Maldives
Healthcare in the Maldives is structured around a mix of public and private providers. The government primarily funds the public healthcare system, offering universal health coverage to all citizens through a program called Aasandha. This scheme allows Maldivians to access a wide range of medical services without any out-of-pocket expenses, both locally and in select overseas institutions.
The quality of healthcare varies, with top-tier care available in Malé, the capital, and limited resources in the outlying atolls. However, the government has been making significant efforts to decentralize services and improve healthcare access throughout the archipelago.
Private healthcare in the Maldives is growing, particularly in Malé and other major cities. These providers often deliver a higher standard of care and have shorter waiting times compared to public facilities, making them a popular choice among those who can afford it.
Employment Law
Employment Law in the Maldives
Relevant Legislation: The Employment Act of the Maldives (Act No. 2/2008) is the principal legislation governing employment relations, outlining the rights, duties, and obligations of both employees and employers.
Employment Contracts: In the Maldives, employment contracts can be oral or written, but written contracts are encouraged for clarity and protection of rights. These contracts should detail the terms and conditions of employment, including job description, wage details, working hours, leave entitlements, and termination procedures.
Working Hours: The standard work week in the Maldives is a maximum of 48 hours, spread over a 6-day week, with Friday typically being the day off. However, employers and employees can agree on different working arrangements provided they adhere to the maximum limit.
Leave: Employees in the Maldives are entitled to 30 days of paid annual leave and 30 days of paid sick leave. Maternity leave is also provided for a period of 60 days, inclusive of public holidays and weekends.
Overtime: Overtime is considered as any work performed beyond the normal working hours. It must be compensated at a rate not less than one and a half times the normal hourly wage rate. However, the total working hours, including overtime, must not exceed 56 hours in a week.
Termination: Employment can be terminated by both parties with a valid reason, and the grounds for termination must comply with the reasons laid out in the Employment Act. This could include misconduct, repeated absence, retirement, mutual agreement, or redundancy.
Notice: Notice of termination must be given by both employers and employees. The length of notice depends on the period of employment: less than 1 year – 1 week’s notice; between 1 and 5 years – 2 weeks’ notice; more than 5 years – 1 month’s notice.
Severance Pay: The Maldives Employment Act provides for severance pay in case of redundancy. The compensation is equivalent to 30 days’ wages for each full year of service.
IMMIGRATION
Work Permits in the Maldives
Immigration in the Maldives is managed by the Maldives Immigration Department. The department ensures that all immigration and emigration laws and regulations are strictly adhered to and oversees all processes related to the movement of foreigners in and out of the country.
Foreigners intending to work in the Maldives require a valid work visa. The issuance of these visas involves a two-step process. First, an Employment Approval (EA) is obtained by the employer on behalf of the foreign worker from the Ministry of Economic Development. Following this, the work visa is then issued by Maldives Immigration based on the EA. The work visa permits the holder to reside and work in the Maldives for the period of validity.
Work visas are categorized into two types:
- Employment Approval (EA): This is for unskilled and semi-skilled workers. The EA is obtained by the prospective employer and is job-specific, employer-specific, and location-specific.
- Work Visa: This is for skilled workers and professionals. This visa also requires an offer of employment from a Maldivian employer. Work visas are issued for a period of one year and can be renewed annually.
It’s important to note that foreign workers are only allowed to work for the employer and in the job specified on their work visa. They are also expected to abide by the laws and respect the socio-cultural norms of the country. Any violation may lead to penalties or deportation.
At AgilityEOR, we offer comprehensive services to guide you through the complexities of immigration procedures in the Maldives. From ensuring compliance with immigration laws to assisting with the visa application process, we provide support every step of the way to help your business transition smoothly.
Public Holidays
Maldives Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
National Day | Variable (Rabi’ al-awwal) |
The Day Maldives Embraced Islam | Variable (Rabi’ al-thani) |
Independence Day | July 26 |
Victory Day | November 3 |
Republic Day | November 11 |
First Day of Ramadan | Variable (Ramadan 1) |
Eid al-Fitr | Variable (Shawwal 1-3) |
Hajj Day | Variable (Dhu al-Hijjah 8) |
Eid al-Adha | Variable (Dhu al-Hijjah 10-13) |
Islamic New Year | Variable (Muharram 1) |
Birthday of Prophet Muhammad | Variable (Rabi’ al-awwal 12) |
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The Benefits
Maldives Employer of Record Benefits
When you choose Agility EOR to expand in the Maldives, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in the Maldives so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the the Maldivian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning the Maldives payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.