Trans Maldivian Airways (TMA), the operator of the world’s largest seaplane fleet, has reversed its decision to pay part of its employees’ salaries in Maldivian Rufiyaa, following threats of a strike by pilots, engineers, and cabin crew.

The planned industrial action was set for 26 July, in response to TMA’s earlier decision to partially pay salaries in local currency.

The protest gained momentum as employees raised concerns about the currency change, citing financial inconvenience and potential losses from currency conversion.

After discussions with staff representatives, the company has now confirmed that salaries will continue to be paid fully in US dollars, effectively defusing the strike threat.

TMA, which employs over 1,500 staff including 200 pilots, had initially planned to pay 80% of salaries in dollars and 20% in Rufiyaa.

This policy shift was prompted by a new regulation from the Maldives Monetary Authority (MMA), effective since January 2025, requiring tourism-related companies to exchange a portion of their foreign currency earnings with local banks.

Under the regulation:

Category A businesses — including resorts and integrated tourist resorts — must exchange USD 500 per tourist per month or 20% of their gross monthly revenue.

Category B businesses — such as guesthouses, tourist hotels, and vessels — must convert USD 25 per tourist per month or 20% of their revenue.

Category C businesses — those with annual foreign currency transactions above USD 15 million — are also mandated to exchange 20% of their gross sales.

TMA’s initial move to partially pay salaries in local currency was directly linked to this policy, which has increased operational pressure on tourism service providers.