Pension and Social Security in Maldives
In accordance with the Maldives Pension Act of 2009, it is mandatory for all employers to register with the Maldives Pension Administration Office (MPAO) and enroll their local employees in the Maldives Retirement Pension Scheme (MRPS).
The Maldives Retirement Pension Scheme operates on a defined contribution basis, wherein both the employer and the employee contribute a predetermined amount monthly while in employment. This contribution amounts to 14% of the employee's pensionable wage, split equally between the employee (7%) and the employer (7%).
Employers are legally obligated to remit the mandatory contribution on or before the 15th day of the following month.
While participation in the MRPS is not compulsory for expatriate employees, foreign workers who desire to join the Retirement Pension Scheme may do so with the consent of their employers. In such cases, employers are required to cover the employer contributions and handle the necessary administrative procedures.