Income Support Allowance Will Be Facilitated till December by the Government
The global outbreak of COVID-19 this year pretty much impacted everyone worldwide. Nonetheless, the toll it took on small countries with middle class income was more serious in nature compared to more developed countries; Maldives being included in the list. Our economy was so strained; a large number of businesses were unable provide salary for their employees or had been forced to reduce the salaries of employees. Many employees were laid off by employers, working on no-pay or decreased salaries when the outbreak reached its peak in Maldives.
Therefore, the government introduced an ‘Income Support Allowance’ in order to provide some kind of relief to individuals subsequently undergoing financial difficulties due to employment issues. Individuals that were dismissed or suspended from employment, individuals on leave without pay, individuals facing salary deductions, and freelance workers were eligible to receive the allowance under the scheme, under the condition they do not have an alternative source of income. A total amount of MVR 5,000 allocated to be distributed for such individuals each month.
The Income Support Allowance was initially envisaged for a duration of three months. As of now, the government has extended the duration on two separate occasions. Ministry of Finance recently announced that the provision of the allowance will be continued until December of this year. They also highlighted that this duration would be extended if the need to do so arises.
Statistics shows that the government has issued MVR 89.9 million as Income Support Allowance by 24th September.