A bill seeking to amend the Employment Act to make it mandatory for tourism industry employees to receive service charges in USD, or in goods collected from tourists, rather than in Maldivian Rufiyaa has been submitted to the Parliament by the opposition.

The amendment was submitted by Kendhoo MP Mauroof Zakir, who tabled the proposal on behalf of the MDP caucus.

Under Article 52 of the Employment Act, all tourism businesses must charge a minimum 10 per cent service charge, of which 1 per cent may be retained by the employer as an administrative fee, while the remaining 9 per cent must be distributed equally among employees. Current legislation does not require the service charge to be paid in dollars.

The proposed amendment seeks to insert two additional clauses into Article 52(b).The first clause would prohibit employers from converting the service charge revenue from foreign currency into Maldivian Rufiyaa before disbursing it to employees. Employees would instead be paid based on the actual currency in which the service charge was collected.

The second clause aims to prevent discrimination in the payment of service charges to workers employed on temporary contracts or through third-party agencies, ensuring that all tourism workers receive equal treatment under the law.

Service charge in the tourism sector is generally collected in dollars, but many employees report that employers convert the amount into Maldivian Rufiyaa before payment. Speaking to local media, MP Mauroof said the amendment was introduced in response to widespread complaints from tourism sector workers who argue that payments made in rufiyaa reduce the value of their earnings.