Establishing and managing payroll in the Maldives
If you are interested in expanding your organization into the exciting marketplace of the Maldives, then an important step is likely to be setting up a Maldivian payroll and start hiring a workforce locally. This process can be long and difficult, potentially causing delays to your expansion and incurring unexpected expenses.
New Horizons offers a flexible range of payroll outsourcing services for organizations expanding into the Maldives. Our experts can handle all the legal compliance work, taxes, and payroll-related administration, even acting as your employer of record in the country, making the whole expansion process more efficient and helping you get up and running faster.
If you have an entity
If you have already set up a legal entity within the Maldives, our payroll team can take all the complex payroll administration off your hands, helping you employ locally in accordance with local employment laws, managing HR, contracts, and handle any associated administration.
This option is perfect for larger businesses that could benefit from outsourced Maldives payroll and consultancy services.
If you don’t have an entity
If you haven’t established an entity in the Maldives, our dedicated Maldivian subsidiary can work as your employees’ official employer of record. Our team will handle all of your payroll, contracts, associated legal work, and associated administration, helping you focus solely on a successful expansion.
This service is ideal for any organization aiming for full flexibility and low risk while expanding into the Maldives. You will remain autonomous and have full control over your Maldivian workforce while not having to deal with any of the complex administration and compliance work.
Expanding your business in the Maldives with New Horizons
Maldives payroll guide
Taxation and withholdings in the Maldives
The personal income tax in the Maldives is progressive, ranging from 0% to 15% of income depending on income level.
The corporate tax rate in the Maldives is either 0% (for profits under 500,000 MVR per year) or 15% (for companies earning over 500,000 MVR per year). Some other companies, such as banks, may have different tax rates.
Entitlements and terminations rules in the Maldives
Employers in the Maldives must provide notice of termination in most cases. The mandatory minimum notice period varies depending on the employee’s length of service, but is generally between two weeks and two months. Severance payments are less common, but are often expected for senior-level employees.
How to establish a Maldives payroll
Establishing a payroll in the Maldives for local employment can be a complex process. Firstly, your organization will generally need an in-country entity to act as employer of record for any employees. You will then need to closely follow the relevant business and employment regulations and administrative procedures, which can be very time-consuming.
Alternatively, you can outsource the setup and management of your payroll to New Horizons. We will ensure that your expansion into the Maldives is as simple as possible, helping you get started in the county faster and more efficiently. Additionally, we can offer our employer of record service, so even organizations without an in-country can benefit from our outsourcing services.
Your all-in-one solution for payroll outsourcing and Maldives expansion
New Horizons’ Maldives payroll, PEO, and employer of record services enable your business to begin trading in the Maldives in as little as 48 hours, whether or not you have a legal entity in the country, and could even save as much as 80% in expansion costs.
Our team of Maldives expansion experts can also take care of your company’s payroll, benefits, and any other associated administration in the country. As the only global PEO with an in-house recruitment team, New Horizons can also source, recruit, and onboard your local employees, giving you more capacity to focus on your expansion efforts.