
TEAM calls for halt to resort employees' salaries in Rufiyaa
The new law mandates tourism businesses to exchange a specified amount of dollars into Rufiyaa.
Tourism Employees Association of Maldives (TEAM) on Friday criticised the conversion of resort employees' salaries and service charge payments from US Dollars to Maldivian Rufiyaa, following the implementation of amendments to the Foreign Exchange Act.
The new law, which came into effect in January, mandates foreign exchange-earning businesses, including resorts, to exchange a specified amount of dollars into Maldivian Rufiyaa. Under the law, resorts must either exchange $500 per tourist or 20% of their revenue.
In response, some resorts have begun paying employees' salaries and service charges in Maldivian Rufiyaa instead of US Dollars.
TEAM has expressed opposition to this development, urging the government to intervene.
In a statement, TEAM outlined several issues arising from the currency conversion:
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Resort employees experience a reduction in income, estimated at MVR 3,000 to MVR 5,000, when paid in Maldivian Rufiyaa.
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The rising cost of goods and living expenses adds financial strain on workers.
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Approximately 70% of employees in the tourism sector are foreign nationals, who rely on earnings in US Dollars to support their families abroad.
TEAM emphasised the importance of preserving the original terms of employment contracts, stating that converting payments into Maldivian Rufiyaa undermines financial stability for workers in the tourism industry.
The organisation has called on the government to take immediate steps to address the situation, specifically urging the following actions:
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Halt the conversion of resort employees’ salaries and service charge payments from US Dollars to Maldivian Rufiyaa.
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Prevent changes to employment contracts that alter agreed payment terms.
In the statement, TEAM stated, “We also call on the government to stop the conversion of salaries and service charges in dollars from resorts.”
The government has not yet issued a response to TEAM's statement or addressed concerns regarding the impact of the Foreign Exchange Act amendments on tourism sector employees.