With Ramadan approaching, both employers and employees in the Maldives must understand their legal rights and obligations regarding the Ramadan allowance. Mandated by the Employment Act (Law No. 2/2008) and its amendments, this allowance ensures that employees receive financial support ahead of the fasting month. Here’s what workers and businesses need to know to remain compliant and informed.
Who Is Entitled to Ramadan Allowance?
The law grants all Maldivian employees a Ramadan allowance of MVR 3,000, which must be paid before the beginning of Ramadan. This entitlement applies to both public and private sector employees, ensuring equal treatment across industries.
For Muslim expatriate employees, the law does not guarantee an allowance, but employers may provide it at their discretion. If an employer in the public sector decides to offer an allowance to expatriate Muslim workers, it must follow the same terms as those for Maldivian employees. In the private sector, expatriate Muslim employees should receive an allowance equivalent to what Maldivian workers receive within the same workplace if the employer chooses to provide it.
What Employers Must Do
Employers must ensure the Ramadan allowance is paid in full and on time before Ramadan begins. There are no legal exceptions to this requirement for Maldivian employees.
Failure to provide the allowance could result in legal consequences, including penalties or administrative action by the Labour Relations Authority, which monitors compliance with employment laws.
Employers also have the option to offer a higher Ramadan allowance, provided it meets or exceeds the legally mandated amount.
How the Ramadan Allowance is Paid
The Ramadan allowance must be paid as a direct financial benefit and cannot be substituted with food, vouchers, or any other non-monetary form.
Employers should also ensure proper documentation of these payments in salary statements to provide transparency and avoid disputes.
What to Do If the Allowance Is Not Paid
Employees who do not receive their Ramadan allowance should first bring the issue to their employer’s attention. If the matter remains unresolved, they can file a complaint with the Labour Relations Authority or escalate the issue to the Employment Tribunal for legal recourse.
Key Takeaways
- All Maldivian employees are legally entitled to a Ramadan allowance of MVR 3,000.
- Muslim expatriate workers may receive the allowance at the employer’s discretion.
- The allowance must be paid before Ramadan begins and cannot be substituted with other benefits.
- Employers who fail to comply may face legal penalties.
- Employees can file complaints with the Labour Relations Authority if they are not paid.
By ensuring compliance with the Employment Act, employers can uphold fair workplace practices, and employees can be aware of their rights, fostering a transparent and legally sound work environment ahead of Ramadan.
