Crackdown on Undocumented Workers Drives Surge in Expat Fee Revenue
Government intensifies efforts to regulate undocumented foreign labour across the country | Photo: Maldives Immigration
The Maldives Inland Revenue Authority (MIRA) has reported that a government-led clampdown on undocumented foreign workers has resulted in a significant increase in revenue collected from expatriate-related fees.
MIRA’s 2024 annual report shows that revenue from expatriate quota fees and work permit fees exceeded projections for the year, with expatriate quota fees marking the highest increase. Total revenue from these fees reached USD 28 million, surpassing the initial estimate of USD 16.6 million, equivalent to MVR 255.43 million.
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A total of USD 19.1 million was collected for 147,334 quotas issued during the year, while an additional USD 8.9 million came through partial payments. MIRA stated that the quota fee is calculated based on the proportion of quota allocated. The authority also noted that the introduction of an instalment payment option contributed significantly to exceeding revenue targets, as many outstanding dues were settled in this manner.
Work permit fees for foreign workers were the second-largest contributor to the rise in expatriate-related revenue. The fee, set at USD 22.70 per month per worker, brought in USD 43.5 million in 2024, surpassing the government’s forecast of USD 35.9 million. This represented a 21.4 percent increase over the projected figure.
The rise in revenue has been attributed to strict enforcement measures by the Immigration Department, which intensified efforts to address the longstanding issue of undocumented foreign workers in the country.
There was also a notable improvement in the compliance rate for payments of expatriate-related fees. The government reported in April that the compliance rate had risen to over 50 percent, compared to just 22 percent in 2023.
When the current administration assumed office in November 2023, a total of USD 123.2 million in expatriate-related fees was outstanding. Within a short period, this figure has been reduced to over USD 58 million, reflecting the impact of the government’s enforcement initiatives.
