Jumhooree Party leader and prominent resort operator Gasim Ibrahim
Jumhooree Party leader and prominent resort operator Gasim Ibrahim
Jumhooree Party leader and prominent resort operator Gasim Ibrahim has criticized the practice of paying resort employees their service charge in Maldivian Rufiyaa (MVR), despite the amount being collected in US dollars from tourists.

His comments come amid growing concern after Universal Resorts, one of the Maldives’ largest tourism companies, announced it would pay employee service charges in local currency. The decision follows amendments to the Foreign Exchange Act, requiring Category A resorts to deposit either USD 500 per tourist or 20 percent of their monthly income into a Maldivian bank. Guesthouses under Category B must deposit USD 25 per tourist or 20 percent of their monthly income.

Gasim noted that the service charge is collected in dollars and argued that converting it to MVR without employee consent could amount to unlawful deprivation under the Penal Code. He emphasized that employees have both a legal and religious right to receive their earnings in the currency in which it was collected.

He acknowledged that his own Category A resorts, which employ thousands, are also affected by the new rules. However, he stressed that these challenges should not come at the cost of employees’ rights. Gasim described the payment of service charges in local currency as a significant loss to workers and warned that if the matter is taken to court, the outcome would likely favour the employees.

He also expressed concern that other companies might follow suit and switch to paying in MVR. If employees have agreed to be paid in dollars for a specific period, Gasim said they must continue to be paid in dollars during that timeframe.

The move by Universal Resorts, has sparked public backlash, with critics accusing the company of acting against the interests of both its workers and the nation.