News

Parliament accepts MDPs bill that blocks service charge conversion

The PNC-led parliament has greenlit an MDP bill requiring tourism businesses to pay service charges in the same currency received. The bill has been sent to committee for review.

Moosa Rasheed
Apr 23, 2026
1 min read
Policy & RegulationTourism

The PNC led parliament gives the green signal for a proposed amendment to the Employment Act, tabled by the opposition Maldivian Democratic Party (MDP), which would force tourism businesses to pay employees their share of service charges in the same currency it was received.

The bill was introduced by Member of Parliament for Kendhoo constituency Mauroof Zakir. He is also an advocate for workers' rights and General Secretary of the Tourism Employees Association of Maldives (TEAM).

The bill secured 67 votes on Wednesday, moving it to the Committee on Security Services for review.

The existing law requires tourism establishments to add a minimum 10 percent service charge to bills. After keeping 1 percent to cover administrative costs, the rest must be shared among staff.

However, the law doesn't say whether the distribution should be done in a specific currency or not.

Speaking at the parliament yesterday, Mauroof argued that some employers collect service fees in dollars but pay workers in rufiyaa, effectively reducing the value. The bill explicitly bans such conversion and requires payment in the same currency collected.

The proposed amendment also forbid discrimination in service charge distribution, ensuring equal treatment for temporary staff and workers hired through third-party agencies.

The amendment comes amid broader debates over foreign currency exchange rules enforced by the Maldives Monetary Authority and growing complaints from tourism sector employees about unfair payment practices.

Subscribe to our Newsletter and stay up to date!

Subscribe to our newsletter for the latest news and work updates straight to your inbox.

Oops! There was an error sending the email, please try again.

Awesome! Now check your inbox and click the link to confirm your subscription.