More than 30,000 businesses across the Maldives are set to benefit from a sweeping reform of expatriate labour policies aimed at easing financial pressures on smaller enterprises, according to the Ministry of Homeland Security and Technology.
Effective 1 April 2026, the government has introduced a full exemption on foreign labour quota fees for micro, small and medium-sized enterprises (MSMEs) employing fewer than 20 expatriate workers. The policy removes the previously mandatory annual fee of around USD 130 per worker—previously USD 129.74—lifting a significant cost burden for thousands of businesses.
In addition to the exemption on current quotas, the government has also cancelled outstanding quota fees incurred by eligible SMEs prior to the implementation of the new policy, providing further financial relief.
Business owners who qualify can access the exemption through the government’s centralised Xpat Online System from Wednesday onwards. The reform follows directives from President Dr Mohamed Muizzu to strengthen the small business sector and was introduced in response to concerns raised during a consultative meeting with business owners held on 17 December last year.
While the measure offers broad support, strict safeguards have been introduced to prevent misuse. Businesses that share the same shareholders, owners or partners are prohibited from making multiple claims. Additionally, once a business exceeds 20 expatriate workers, quota fees will apply starting from the 21st worker onwards.
The ministry stated that the initiative forms part of a wider two-year macroeconomic strategy to address structural challenges within the national economy. Alongside immediate cost reductions, the government is also working to establish a comprehensive system to better collect and manage data on the expatriate workforce.
Overall, the policy is expected to significantly reduce operating costs for MSMEs, many of which have faced high expenses associated with hiring foreign workers, while supporting long-term growth and sustainability in the sector.
