WAMCO fails to deposit employee pension contributions for 19 months; matter submitted to Parliament
Mohamed Ibrahim, the Member of Parliament for Galolhu North, has formally requested a parliamentary inquiry into the Waste Management Corporation’s (WAMCO) failure to deposit employee pension contributions for the past 19 months. Despite the company citing financial constraints as the reason for the non-payment, the MP emphasized that this negligence deprives employees of their fundamental rights and has urged the State-Owned Enterprises (SOE) Committee to investigate the matter. In his letter to the Speaker of Parliament, the MP called for those responsible to be held accountable and demanded a detailed repayment plan to ensure the outstanding funds are recovered.
Member of Parliament for North Galolhu, Mohamed Ibrahim (Kudoo), addresses a session of the People's Majlis. | majlis
The issue of Waste Management Corporation Limited (WAMCO) failing to deposit pension contributions deducted from employee salaries into the Retirement Pension Scheme for 19 months has been brought to the attention of the People’s Majlis.
Mohamed Ibrahim (Kudoo), the Member of Parliament for the North Galolhu constituency, has formally brought this matter to the attention of the Speaker of Parliament, Abdul Raheem Abdulla.
In a letter addressed to the Speaker, the MP highlighted that according to statistics from the Pension Office, the last pension contribution made by the Waste Management Corporation (WAMCO) for its employees was on October 16, 2024.
Since then, no payments have been deposited to date. It has been noted, however, that pension contributions continue to be deducted from the corporation's employees' salaries every month.
The letter noted that in a press release issued by Waste Management Corporation Limited (WAMCO) on January 13, 2026, regarding the failure to deposit pension contributions deducted from employees' salaries, the corporation highlighted that it currently pays staff salaries and benefits through its own revenue supplemented by government subsidies. The letter further stated that according to the press release, the corporation is facing difficulties in depositing employee pension funds because it has not received 98 million Rufiyaa owed by the Malé City Council.
However, Ibrahim stated that the financial difficulties arising from unpaid dues to the corporation do not constitute a valid legal justification for withholding the basic rights and legal obligations of employees.
Ibrahim stated that under Article 38 of the Constitution, the right to receive a pension is a fundamental right guaranteed to every Maldivian citizen. To protect this right, he noted that Section 12 of the Maldives Pension Act mandates that every employer fulfills the legal obligation of making regular pension contributions for their employees.
Furthermore, the letter emphasized that pursuant to Section 8(a) of the Retirement Pension Scheme Regulations, employers are legally obligated to deposit pension contributions into the scheme within the prescribed timeframe after deducting the funds from employees' salaries.
The member stated that regardless of the size of a company's workforce, the law provides no exemption from this responsibility. However, Kudu noted that the failure to make these payments regularly is depriving employees of essential financial benefits, including investment returns from the pension fund and the ability to use their pension savings as collateral for housing loans.
Given that this is a critical issue directly linked to the fundamental rights of hundreds of employees and the operational integrity of state-owned enterprises, the Member has requested the Parliament's Committee on State-Owned Enterprises to investigate the matter. Furthermore, the Member has called for the leadership of WAMCO and the Pension Office to be held accountable. The submission urges the Committee to direct the corporation to present a detailed plan to Parliament outlining how it intends to settle all outstanding payments as expeditiously as possible.
