Employers in the Maldives are reminded to pay the mandatory Ramadan allowance of MVR 3,000 to all eligible employees, as stipulated under Article 51(h) of Law No. 2/2008 (Employment Act), before the commencement of Ramadan. This legal requirement ensures that all Maldivian employees, regardless of their employment status, receive the allowance in full and on time.
Legal Obligations for Employers
The Ramadan allowance is a legal entitlement for all Maldivian employees working in both the public and private sectors. This includes temporary workers, employees on probation, and those on statutory leave. The allowance must be paid as a direct financial benefit and cannot be substituted with food, vouchers, or any other non-monetary form. Employers are also required to document these payments in salary statements to maintain transparency and avoid potential disputes.
For Muslim expatriate employees, the law does not mandate the payment of a Ramadan allowance. However, if employers in the public sector choose to provide it, they must adhere to the same terms as those for Maldivian employees. In the private sector, if an employer decides to offer the allowance to expatriate Muslim workers, it should be equivalent to what Maldivian employees in the same workplace receive.
Compliance and Consequences
The Labour Relations Authority (LRA) has emphasised the importance of compliance with this legal requirement. Despite the clear mandate, there have been instances where employers have failed to pay the Ramadan allowance in accordance with the law. Last year, the LRA received numerous complaints from employees who did not receive their entitlement.
Employers who fail to pay the Ramadan allowance on time or in full may face legal consequences, including penalties or administrative action by the LRA. The authority actively monitors compliance with employment laws and encourages employees to report any violations.
What Employees Can Do
Employees who do not receive their Ramadan allowance before the start of Ramadan are advised to first raise the issue with their employer. If the matter remains unresolved, they can file a formal complaint with the Labour Relations Authority or escalate the issue to the Employment Tribunal for legal recourse. The LRA has assured that it will take appropriate action to ensure employees receive their rightful entitlements.
Encouraging Fair Practices
While the law mandates a minimum Ramadan allowance of MVR 3,000, employers have the option to offer a higher amount if they choose to do so.
As Ramadan approaches, employers are urged to ensure that the allowance for the year 1446 is paid in full compliance with the Employment Act.
