Government Exempts SMEs from Foreign Worker Quota Fee

The Maldivian government has amended its employment rules to exempt small and medium enterprises (SMEs) from paying the mandatory quota fee for foreign workers, provided they employ fewer than 20 expatriates. The amendment to the Employment of Foreigners Regulations, published in the Government Gazette, aims to ease financial pressure and improve operational efficiency for smaller businesses, which are crucial to the national economy. Previously, all businesses employing foreign workers were required to pay a quota fee of USD 130 per worker annually to the Ministry of Homeland Security and Technology. Under the revised rules, this fee is waived for SMEs whose total foreign workforce stays below 20. The government has also announced it will cancel any outstanding quota fees incurred by SMEs prior to the amendment, providing immediate financial relief. To prevent misuse, the regulation specifies that the exemption will not apply to other SMEs established by shareholders or responsible individuals of an exempted company. Businesses that increase their foreign workforce beyond 20 employees will be required to pay the full USD 130 fee starting from the 21st worker. In a related measure, the Ministry has been granted discretion to provide an additional one-month extension to employers facing difficulties in paying work permit fees, assessed on a case-by-case basis. These reforms are part of the government’s broader strategy to regulate the foreign workforce, which includes efforts to address illegal practices and undocumented labour, while ensuring legitimate businesses can operate without undue burden.