President says dollar salaries of resort employees must continue

President Mohamed Muizzu on Monday said resort employees and others who currently receive their salaries in US dollars must continue to be paid in the same currency, following concerns over plans announced by the Maldives Monetary Authority (MMA) to phase out dollar salary payments.

Speaking at a ceremony at the President’s Office to ratify seven bills, Muizzu said the rights of employees currently receiving their salaries in US dollars should not be affected by changes to the country’s foreign exchange framework.

“The salary of any person earning in US dollars must not be diminished. There is no reason to introduce such a change. Their salaries must continue to be paid as before,” Muizzu said.

“The government will stand firm in defence of the people’s rights and remain on the side of the public on this matter.”

The President’s remarks follow comments by MMA Governor Ahmed Munawwar last week outlining the central bank’s aim of increasing the use of the Maldivian rufiyaa for domestic transactions by 2030.

Munawwar said salaries currently paid in foreign currency, including those at resorts and Trans Maldivian Airways (TMA), would eventually need to shift to rufiyaa as part of efforts to increase demand for the local currency.

“Salaries are currently paid in dollars — for example, at Trans Maldivian Airways or across resorts. Therefore, dollar salary payments must undergo a change. That is how demand for the Maldivian rufiyaa will increase,” Munawwar said at the time.

The Governor did not announce an implementation schedule for ending dollar salary payments.

His remarks prompted opposition from resort employees, with workers raising concerns on social media over the potential impact of changing salaries and service charge payments from US dollars to rufiyaa.

The Tourism Employees Association of Maldives (TEAM) subsequently launched a petition opposing any move to end dollar salary payments.

TEAM has said employees from 42 resorts joined the petition within the first 24 hours of its launch and has called on workers across the tourism industry to participate in the campaign.

The President’s comments on Monday indicate that the government does not intend to discontinue existing US dollar salary arrangements for resort workers.