At a time when the novel coronavirus is rapidly spreading across the globe, it is not the best circumstances to declare minimum wage, says Chairperson of Salary and Wage Advisory Board (SAWAB) Mariyam Khalidha.
On Wednesday, the Parliament's Secretariat held a forum to seek public opinion on minimum wage. Speaking during the forum, Chairperson of Salary and Wage Advisory Board (SAWAB) Mariyam Khalidha stated that efforts were made to finalize a minimum wage best suited for both employees and employers.
Khalidha stated that working on declaring minimum wage had begun before the coronavirus pandemic emerged. Highlighting that the pandemic can have negative economic impacts, Khalidha stated that it is an important factor for the government to consider before declaring a minimum wage.
Khalidha went onto state that the board had been tirelessly working on finalizing a minimum wage since June to December 2019 and that the board had received recommendations from the parliament alongside other authorities. However, the board determined to conduct their research as per international guidelines, said Khalidha.
The public forum also featured a presentation on SAWAB's research on minimum wage. According to the board's research officer, the research was based on information collected from the Household Income and Expenditure Survey (HIES) by the National Bureau of Statistics (NBS) and the National Food Based Dietary Guidelines for Maldives by the Health Protection Agency (HPA).
The research divided necessary expenses into two categories; rent and household expenses. The board's research shows that rent takes up the largest portion of necessary expenses while household expenses cost a minimum of MVR926.
The board followed an international index when setting the minimum wage. As per the index, the board set the minimum wage between MVR4125 and MVR 6544. While the board's report revealed that more than 40 percent of the Maldivian workforce earn less than MVR 6,000 as a monthly salary, they recommended to set the minimum wage of MVR 6,400.
