The World Bank’s Board of Directors on Wednesday, have approved a USD12.8 million project to assist Maldivian workers facing corporate redundancies.
This initiative is a discoursed remedy towards offsetting the economic slide faced by the island nation in light of the Covid-19 viral pandemic.
According to officials, under the initiative the bank is expected to provision funding for the ‘Covid-19 Income Support Allowance Scheme’ developed by the Maldives government.
As such, under the initiative a monetary compensation as an allowance, of MVR5000 will be provided to individuals who were made redundant or faced challenges in earnings amid the pandemic.
Maldives government commented the initiative will enhance state support towards benefiting the public in the provision of allowances or other monetary aid.
Meanwhile, there has been prospective discussion of introducing a new insurance scheme for the employees to ensure job-security for them in light of unprecedented events in the future.
Moreover, such programs will be reviewed in a timely manner to ensure sustainability of other schemes such as the pension fund policies.
According to the government the ‘Covid-19 Emergency Income Support Project’ will be carried under the mandate of Ministry of Economic Development with the support of National Social Protection Agency and Maldives Pension Administration Office.
Under the USD12.8 million initiative USD6.4 million is provided as grant by International Development Association (IDA) under World Bank while the remaining USD6.4 million grant is directly through the bank.