Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
MVR Rf (Maldivian Rufiyaa)
Employer contributions
7% employer pension contribution
Minimum wage
MVR 2,550/month (Maldivian nationals)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Male
Timezone
MVT (GMT+5)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~MVR 12,840 total
/month
For a gross salary of
MVR 12,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
7% employer pension contribution
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - MRPS by 15th - work permit renewals
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~MVR 12,840 total
Example gross salary
MVR 12,000 gross/month
~MVR 11,160 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~MVR 840 pension
Employer contributions on that salary
Employer contributions
7% employer pension contribution
Employee contributions
7% employee pension + income tax (if applicable)
Total cost above gross
~7% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~MVR 10,000
Per month
Male
MVR 12,000 - 35,000
~35%
Addu City
MVR 8,000 - 20,000
~10%
Monthly gross. National average salary per year:
~MVR 120,000
Minimum wage
MVR 2,550/month (Maldivian nationals)
Paid:
Monthly
Extra pay
Annual Bonus
Discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to MVR 720,000/year (no income tax for most employees below threshold)
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly pension by 15th
Social security payments
Not applicable (most employees below income tax threshold)
Income tax
Not applicable
Employee tax certificate
Not applicable
Not applicable
Annual return
Not required (most below tax threshold)
Late payment penalties
Late MRPS: fines per MIRA regulations; work permit violations: MVR 5,000+
Who collects what
MIRA
Tax and pension administration
Department of Immigration
Work permit administration
Ministry of Economic Development (Labour)
Labor law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
30 days/year
Public holidays
~15 public holidays
Sick leave
Sick Leave
30 days/year from employer
Maternity leave
10 weeks (60 days) maternity
Full pay employer
The contracts you can use, and what ending an employment relationship costs.
Permanent
Permanent Contract
Fixed term
Fixed-Term Contract
Independent contractor
Service Contract
Collective agreements
No general CBA
Ending employment
End-of-Service Gratuity
How it is calculated
1 month per year of service (after 1 year)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Expatriate Work Permit Compliance
Risk Level: HIGH
The Maldives requires work permits for all expatriate workers with annual renewal. The hospitality and construction sectors have high foreign worker populations with strict permit requirements. Non-renewal results in fines and deportation.
MRPS Contribution Non-Registration
Risk Level: MEDIUM
All Maldivian national employees must be enrolled in MRPS. Failure to enroll or remit monthly contributions triggers MIRA penalties.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.