MDP MP calls for faster passage of dollar service charge bill

North Galolhu MP Mohamed Ibrahim has called on Parliament to expedite an amendment to the Employment Act that would require tourism businesses to pay service charges to employees in the currency in which they are collected.

The opposition MDP MP made the request in a letter sent to Parliament Speaker Abdul Raheem Abdulla on Sunday, saying tourism workers had raised concerns that they were not receiving the full benefit of service charges due to them.

The amendment seeks to prevent employers from converting service charge collections into Maldivian rufiyaa before distributing them to employees. Where a service charge is collected in US dollars, employees would receive their share in dollars.

Mohamed Ibrahim said some resorts collect service charges in foreign currency but distribute the money to employees in rufiyaa, which he said prevents workers from receiving the full intended benefit of the provision.

Under the Employment Act, businesses operating in the tourism sector are required to collect a service charge of at least 10 per cent from services provided and distribute the proceeds equally among employees.

The proposed amendment was submitted to Parliament on 8 December 2025 by Kendhoo MP Mauroof Zakir of the MDP.

The bill received its first reading on 10 February. Parliament debated it on 22 April and referred it to the Social Affairs Committee the same day.

Mohamed Ibrahim said the amendment directly concerns the rights of thousands of Maldivians working in the tourism industry and asked for the committee-stage review to be completed as soon as possible so the bill can be brought back to the floor for a decision.

Under the amendment, the Employment Act would state that service charge proceeds cannot be converted into Maldivian rufiyaa before distribution and must be paid to employees in the currency in which the business received them.

The bill also seeks to ensure that workers involved in providing tourism services are treated equally in the distribution of service charges, including those employed under temporary arrangements or through third-party employers.

The issue has drawn attention because many tourism establishments collect service charges from guests in US dollars, while some distribute employees' shares in rufiyaa.

Concerns over the practice increased following changes to foreign exchange requirements for tourism businesses. Resorts are now required to convert 40 per cent of their foreign currency revenue through the banking system, replacing an earlier requirement of 20 per cent.

Mohamed Ibrahim said the proposed amendment was intended to ensure that tourism workers receive the service charge entitlement guaranteed to them under the law.