Regulation on Employment of Expatriates in the Maldives 2025: Key Changes for Businesses
The Ministry of Homeland Security and Technology introduced the Regulation on Employment of Expatriates in the Maldives (Regulation No. 2025/R-120) on 14 December 2025, replacing the 2023 regulation (Regulation No. 2023/R-111). The new framework brings significant changes affecting businesses that employ expatriate workers, particularly in areas of job localisation and the scope of enforcement powers. This article highlights five key changes that businesses should be aware of.
1. Phased Localisation of Job Categories
The regulation introduces a structured timeline for reserving specific job categories exclusively for Maldivians.
The phase-out periods are as follows:
After 2 years: Hairdressers, beauticians, personal trainers, electricians, English-speaking guest relation officers, tour guides, accountants, and imams.
After 3 years: Divers, nurses, building inspectors, surveyors, site supervisors, pilots, and photographers.
After 4 years: Electrical engineers and dive instructors.
After 5 years: Housekeeping managers, human resource managers, front office managers, and primary/secondary school teachers.
Once these deadlines pass, the Ministry will not issue new quotas for these positions, and existing quotas in these categories will be cancelled.
In addition to the phased timeline above, the regulation establishes immediate restrictions on certain positions where no new quotas will be issued from the date the regulation came into force. These include:
Taxi drivers/rental vehicle drivers
Aircraft co-pilots and first officers
Vessel captains
Photographers, videographers, and related work
Entertainers
Cashiers in retail businesses selling fruits and vegetables
The Ministry has discretion to adjust these immediate restrictions based on the availability of Maldivian workers in the job market.
2. Status of Existing Quotas Under the New Regulation
The 2025 regulation formally repealed the Expat Workers Regulation 2023 (Regulation No. 2023/R-111). However, all quotas, permits, and licences obtained under the 2023 regulation remain valid until their original expiry dates, unless the new regulation specifically states otherwise.
3. Enhanced Worksite Inspection and Enforcement Powers
The 2025 regulation significantly strengthens the Ministry's enforcement capabilities through expanded inspection powers. The Ministry or its appointed inspectors can now enter any worksite where expatriate workers are employed without prior notice, at any time, to verify regulatory compliance. This includes locations where expatriate workers are suspected to be working.
The regulation establishes four types of inspections:
Announced inspections with advance notice
Unannounced inspections without warning
Follow-up inspections
Random inspections
During inspections, authorised inspectors have broad authority to enter worksites, interview workers, photograph premises, inspect and copy documents, and collect additional information as needed. Employers must provide workers the opportunity to speak freely with inspectors without interference.
If violations are found, the Ministry has immediate enforcement powers including:
Halting business operations
Closing worksites
Referring cases to Immigration
Fining expatriate workers
Cancelling work permits
These powers represent a substantial shift from previous enforcement approaches and require businesses to maintain continuous compliance rather than preparing only for scheduled inspections.
It should be noted that if the worksite is also a residence, inspectors must obtain permission from the homeowner or have a court order before entering.
4. Tax Compliance Linked to Quota Allocation
The Ministry will consider a business's GST and income tax filing history with MIRA for the past three years when determining whether to reduce or cancel quotas.
The Ministry can reduce or cancel quotas on two primary grounds:
If worksites linked to the quota pool become inactive
Based on the extent to which required GST or income tax returns have been filed with MIRA over the past three years and the amount of quotas issued
When quotas are reduced or cancelled for these reasons, businesses will not receive refunds of quota fees already paid. When cancellations occur, the Ministry will first cancel unused quota slots, then slots with the lowest fees paid. However, businesses may transfer quota fees to other slots before cancellation occurs.
5. Removal of Guaranteed Regularisation Pathway
A critical change that affects businesses with compliance issues is the removal of the detailed regularisation framework that existed in the 2023 regulation.
The 2023 regulation contained an entire chapter dedicated to regularising illegal workers. This meant that workers who had fallen out of compliance, had a defined pathway to legalise the situation through official processes.
The 2025 regulation has replaced the regularisation chapter with a single provision. Article 78 of the regulation states that the Ministry has the discretion to run programmes to legalise expatriate workers who are working without proper permits. However, if such a programme is to be conducted, the Ministry will announce the dates, duration, and details publicly.
As it stands, businesses can no longer rely on the ability to regularise non-compliant workers through a defined process.
Conclusion
The 2025 regulation represents a comprehensive overhaul of the framework governing expatriate workers in the Maldives. The phased localisation timelines and strengthened enforcement mechanisms create new obligations that require immediate attention and strategic planning. Businesses should review their expatriate worker employment practices carefully and seek professional advice to ensure full compliance with these new requirements.
This article provides a general overview and does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. The information is based on the Regulation on Employment of Expatriates in the Maldives (Regulation No. 2025/R-120) and its First Amendment (Regulation No. 2025/R-122) as published in December 2025. Businesses should seek professional legal advice regarding their specific circumstances. For further information, kindly contact contact@nadhanazeer.com.