Maldives Mandates Expatriate Salaries Be Paid Into Registered Bank Accounts

The Maldivian government has amended its employment regulations to mandate that all salaries for expatriate workers be deposited directly into bank accounts opened in the employee’s name at financial institutions registered with the Maldives Monetary Authority (MMA). Enacted through the 3rd Amendment to the Regulations on Employment of Foreigners in the Maldives, the policy legally obligates employers to ensure contracted wages are transferred to licensed local banks. This measure seeks to standardize payment methods and bring foreign workers more fully into the national legal and financial framework. Beyond administrative oversight, the government aims to stabilize the local currency market through this mandate. Currently, a disparity exists where some workers are paid in US Dollars while others receive Maldivian Rufiyaa (MVR). This inconsistency has fueled a black market for foreign currency, often forcing workers paid in MVR to purchase dollars at inflated rates to send money home. Historically, the government has struggled to enforce similar mandates. While previous amendments to the Employment Act introduced fines for non-compliance, collection was eventually suspended, largely because undocumented workers lacked the necessary paperwork to open bank accounts. However, the current update reinforces the goal of safeguarding labor rights and ensuring the efficient collection of the state’s remittance tax on funds sent abroad. These changes are part of a broader regulatory framework that has been in effect since December last year. The Regulation on the Employment of Foreigners governs recruitment, residency permits, and labor standards in alignment with the Maldives Immigration Act and the Employment Act. Under these rules, employers must first advertise vacancies on the government’s Job Center portal to prioritize Maldivian candidates. Once a foreign national is hired and arrives in the country, employers are required to draft and sign a formal employment contract, providing a copy to the employee within 45 days.