Government Proposes Cabinet Powers to Exempt Foreign Worker Quota Fees

The government has proposed amendments to existing labour laws that would grant the Cabinet the authority to exempt certain employers from paying quota fees for recruiting foreign nationals, depending on the type of business and prevailing circumstances.

The amendment was moved in Parliament by Madaveli MP Mohamed Shameez on behalf of the government.

Under the current provisions of the Act, specifically Section (65-4), every employer is required to obtain an approved quota before recruiting any foreign national, in line with regulations and conditions prescribed under the law. Employers are also required to pay a minimum quota fee of MVR 2,000 per annum for each foreign worker. This fee is subject to review every three years and may be increased through amendments to the relevant rules.

The proposed amendment seeks to introduce flexibility into this framework by allowing the Cabinet to decide whether employers belonging to specific industries should be exempted from paying the quota fee. Such exemptions would be determined based on a set of criteria outlined in the bill.

According to the bill, the Cabinet must take into consideration four key factors when deciding on exemptions. These include creating a favourable environment for micro, small and medium-sized enterprises (MSMEs) and expanding their contribution to the national economy; facilitating increased long-term employment opportunities within MSMEs; narrowing the gap between smaller enterprises and large-scale businesses operating in Maldives; and encouraging innovation by promoting new ideas, products and services through enhanced competition in the business sector.

If enacted, the amendment would mark a shift in how foreign labour quotas are administered, particularly with regard to supporting smaller businesses and promoting competitiveness within the economy.

In his presidential speech, President Dr Mohamed announced last week that the government intended to propose changes to the law to exempt companies with fewer than 20 foreigners from paying the annual quota fee.