Impact on small businesses to be considered when setting the minimum wage

Most Maldivians are employed in small and medium-sized enterprises (SME), thus, impact on small local businesses must be considered when setting the minimum wage, says Minister of Economic Development, Fayyaz Ismail.

While speaking at the public forum on minimum wage held on Wednesday, Minister Fayyaz stated that declaring a minimum wage will bring many changes to the country's economy. These changes could have a negative or positive impact on employees, said the minister.

The minister stated that he has no personal opinion on the issue, however, it is best to set a minimum wage that doesn't negatively affect businesses. Highlighting that most Maldivians are employed in SME's, the minister stated that the negative consequences for small businesses should especially be considered. Many jobs will be lost if SME's struggle to offer a minimum wage that is set too high, said Fayyaz, adding that risk is involved in operating businesses.

Noting that many members of the public are unhappy with the delay in declaring a minimum wage, the minister said that the work required cannot be completed in a day or two. The minister went onto highlight that discussions on declaring minimum wage was held 20 years ago as well, adding that citizens would not be facing the current challenges if that work had been completed back then.

The minimum wage will be in light of research based on public opinion and concerns, said the minister. He further reiterated that the Salary and Wages Advisory Board works independently and without outside influence.