Amendment Seeks to Ensure Resort Service Charge Paid in Original Currency

Kendhoo MP Mauroof Zakir has proposed an amendment to the Employment Act aimed at preventing tourism businesses from converting service charges earned in foreign currency into Maldivian Rufiyaa when paying staff.

The amendment, submitted to Parliament, would alter section 52 of the Employment Act to make clear that employers cannot change the currency of the service charge collected from guests before distributing it to workers. Under the proposed change, service charge would have to be paid to employees in the same currency in which it was taken from customers. In practice, this would mean that service charges billed in US dollars or other foreign currencies would need to be passed on to workers in that currency, rather than being converted into Rufiyaa.

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Mauroof, who has been vocal on issues affecting resort employees, said the purpose of the bill is to ensure that tourism workers receive the full value of the service charge already guaranteed to them under existing law. 

ސާވިސްޗާޖުގެގޮތުގައި ލިބޭޑޮލަރު، ރުފިޔާއަށް މާރުކޮށްގެންދިނުންހުއްޓުވުމަށާއި ،ސާވިސް ޗާޖްނުލިބޭގޮތަށް ޓޫރިސްޓުންނަށްސީދާހިދުމަތްދިނުމުގައި ދާއިމީކޮށްހަރަކާތްތެރިވާ މުަވައްޒަފުންނަށްވެސް ސަވީސްޗާޖު ދޭން ޖެހޭގޮތަށް ވަޒީފާއާއިބެހޭ ޤާނޫނަށް އިސްލާހެއް ހުަށަހަޅައިފިން! @TEAMmaldives pic.twitter.com/iryM6zCVnd— Mauroof-TEAM (@MateyZakir) December 8, 2025

Employment Act requires businesses in the tourism sector to levy a service charge of not less than 10 per cent on every service they provide and to distribute that amount among employees.

The amendment also seeks to address complaints about unequal treatment in how service charge is shared. A second clause states that there should be no discrimination in the payment of service charge between employees directly involved in providing services to tourists, whether they are on permanent contracts, temporary contracts or employed through third-party agencies. In many resorts, certain categories of staff are hired through contractors, and worker representatives allege that some employers use this arrangement to limit their share of service charge.

The move comes in the context of recent changes to foreign exchange guidelines introduced under President Dr Mohamed Muizzu’s administration. Under those rules, resorts and tourism facilities are required to exchange a portion of their foreign currency income through the formal banking system. As a result, some resorts have reportedly begun paying service charges in Maldivian Rufiyaa even when it was originally earned in foreign currency.

Employees and labour advocates argue that this practice leaves workers worse off, particularly where there is a gap between official and market exchange rates. They contend that requiring payment in the original currency of the service charge would better protect workers’ incomes.