Paying service charge in MVR is unfair to resort employees: Gasim Ibrahim
Jumhooree Party leader and Villa Group Chairman Qasim Ibrahim has criticized the decision by some resorts to pay employee service charges in Maldivian Rufiyaa (MVR), calling it a violation of workers’ rights and an unjust consequence of recent foreign exchange regulations.
In a post on X (formerly Twitter) tonight, Qasim highlighted concerns about the growing trend among major resorts to issue service charges in local currency despite earning revenue from tourists in US dollars.
He argued that since service charges are collected in foreign currency, employees are entitled to receive them in the same.
Gasim stated
He emphasized that employees who have contractual agreements to receive salaries or service charges in dollars must continue to be paid in that currency unless they explicitly agree to a change.
It is both a legal and religious obligation to return what has been entrusted in its original form
He added
Qasim, whose Villa Resorts also fall under Category A of the tourism sector, acknowledged the financial difficulties faced by businesses due to foreign currency exchange mandates.
Still, he stressed that this does not justify the reduction of employees’ earnings by converting them into MVR.
The recent criticism comes in the wake of an amendment by the Maldives Monetary Authority (MMA), effective since January 2025, requiring tourism establishments to exchange a portion of their foreign currency earnings with local banks. Under this regulation:
- Category A businesses (resorts, integrated tourist resorts, and similar establishments) must exchange either USD 500 per tourist per month or 20% of their gross monthly revenue.
- Category B establishments (guesthouses, tourist hotels, vessels) are required to exchange USD 25 per tourist per month or 20% of gross revenue.
- Category C includes other businesses with annual foreign currency transactions exceeding USD 15 million, which must exchange 20% of their gross sales.
These businesses must deposit the foreign currency with local banks, which are then obligated to sell a set proportion to the MMA.
Qasim noted that although these rules apply to his resorts as well, paying service charges in MVR places an undue burden on employees who rightfully deserve to be paid in the currency the fee was collected in.
He warned that such practices could have legal consequences if contested in court.
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