The People’s Majlis on Sunday approved an amendment to the Employment Act that allows Micro, Small and Medium Enterprises (MSMEs) exemptions from the quota fee paid by employers when recruiting foreign workers in certain industries.

The bill was submitted last month by Mohamed Shameez, a member of the ruling People’s National Congress (PNC).

It was later reviewed by the parliament’s National Development and Heritage Committee, which completed its evaluation without proposing any changes. The committee’s report was presented during Sunday’s parliamentary sitting.

The amendment was passed with the support of 62 members, while no votes were cast against it.

According to Section 65-4 of the Employment Act, employers are required to obtain a quota before hiring foreign nationals.

As part of the application process, employers must pay a minimum annual quota fee of MVR 2,000, an amount that is subject to revision every three years.

The newly approved amendment authorises the Cabinet to exempt employers in specific industries from paying this fee under certain conditions.

The legislation also outlines four key factors the Cabinet must consider when determining eligibility for exemptions.

These include supporting the growth and role of small and medium enterprises (SMEs) in the national economy, increasing employment opportunities within SMEs, narrowing the gap between small businesses and larger companies operating in the Maldives, and encouraging innovation and competition through the introduction of new products, services, and ideas.

Other key amendments proposed by the government to the Employment Act includes changes to the notice period for termination of employment, and two half-hour daily breaks for government employees with children under the age of two, without any pay cuts.

The amendment will take effect once the bill is ratified.