New Insurance Scheme Proposed to Aid Job Loss Recovery
Photo: Peoples Majlis
A new bill has been introduced in Parliament, aiming to establish an insurance scheme providing financial support for individuals facing unemployment while seeking new employment opportunities.
The proposed legislation, initiated by Fuvahmulah Central MDP MP Hussain Mohamed Didi, outlines the creation of an unemployment insurance fund, to be overseen by the Office of the Maldives Pension Administration.
Under the proposed scheme, a “job search allowance” will be provided as a form of unemployment assistance.
Upon the bill’s passage into law, all employees, encompassing both public and private sectors, will be mandated to enroll in the scheme. Eligibility criteria include a minimum of three months of public service or six months in other jobs. Employees must register within 30 days of commencing employment.
According to the bill’s provisions, the scheme will be funded by fixed contributions from both employers and employees. Both parties are obligated to contribute 0.75 per cent of their pension contributions to the fund, payable alongside the pension.
The bill specifies a job search allowance equivalent to 70 percent of the salary based on the pension received at the time of job loss.
The allowance ranges from a minimum of MVR 3,000 to a maximum of MVR 10,000, with payments spanning a maximum of three consecutive months.
However, the proposed financial assistance is not applicable to those voluntarily leaving their jobs, those dismissed with employer consent, individuals dismissed due to incompetence, or those who retire.
To oversee the employment fund, a governing board will be established, comprising a chairman, the CEO of the Pension Office, a board member of the office, a senior employee from the Economic Ministry and the Finance Ministry, along with two representatives from the private sector.
The bill additionally mandates the National Job Center to devise and execute a reemployment placement program, aiding those who have lost their jobs in finding new employment opportunities.