State amends for equal provision of service charges to employees

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Parliamentary Committee on Economic Affairs

A joint Parliamentary Committee formed by the Committee on Social Affairs and the Committee on Economic Affairs passes amendment to collect at least 10% as service charge from tourism industry services.

Moreover, Kendhikulhudhoo constituency MP Ahmed Easa proposed the amendments to the Maldives Employment Act regarding as such.

Changes are apparent from the original bill when the Committee finalized it.

Meanwhile, the amendments propose service charge distribution among employees if the business collects such charges.

Earlier, a previous amendment to the bill makes service charges mandatory in business providing services.

The provisions mandate distribution of service charges to employees before end of the following month.

Furthermore, businesses must collect an administrative fee of no more than 1% as per amendments.

Any breach of the amendments will incur fines on the establishments no more than MVR100,000.

Under the statutory act, Labor Relations Authority is the mandated institute responsible of taking action against such violations.

Moreover, records of service charge income must be maintained and shared with Labor Relations Authority and Maldives Inland Revenue Authority (MIRA) twice every year by the businesses.

Additionally, the authorities hold power to make requests for the data on unscheduled dates for which businesses must comply.

Failure to produce documents may incur fines on the establishments no more than MVR50,000.

Parliamentary session on Monday, next week will hear vote on the proposed amendments.

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