Jumhoori Party leader Gasim Ibrahim has raised concern over the decisions by some tourism operators to pay service charge and salaries in Maldivian Rufiyaa (MVR), rather than US dollars (USD), citing operational difficulties linked to foreign exchange regulations.
Under the Foreign Currency Act, resorts categorised as ‘Category A’ are required to exchange either USD 500 per guest or 20 percent of their monthly foreign currency income through local banks. Universal Resorts recently announced that compliance with this regulation has created significant challenges for their operations. As a result, the company has opted to pay service charge to resort staff in MVR instead of USD going forward.
Gasim, who is also a resort operator with thousands of employees, expressed his opposition to these changes. He noted that service charge is collected from guests in USD and therefore should be paid to employees in the same currency. According to him, failure to do so, particularly when employees expect payment in USD, may amount to extortion under Article 212 of the Penal Code. He also highlighted both legal and religious obligations to fulfil monetary entitlements as originally agreed.
While acknowledging the operational challenges posed by the foreign exchange rules, Gasim maintained that employers should not shift the burden onto staff. He argued that paying in MVR instead of USD could result in financial loss for workers and emphasised that companies must honour existing agreements until the end of contractual terms.
Gasim further described it as deeply concerning that some companies are now extending this practice to basic salaries, and reiterated that employee rights must be respected despite the economic pressures faced by the tourism sector.
