Resort Operators Must Pay Service Charge in Dollars, Says Gasim Ibrahim

Villa Group Chairman Gasim Ibrahim has stated that paying resort employees’ service charge in Maldivian rufiyaa instead of US dollars is illegal and causes significant financial harm to workers.

The statement comes as several major resorts announced plans to switch service charge payments from dollars to rufiyaa starting next month, citing dollar shortage issues. Gasim, who is also the leader of the Jumhooree Party and MP for Mamaigili constituency, posted on X (formerly Twitter) that this decision is unjustifiable.

“Service charge is collected from tourists in dollars. Therefore, employees must receive this benefit in dollars as well,” said Gasim.

Gasim, who chairs the Parliament’s Public Finance Committee, warned that if an employee refuses to accept service charge in rufiyaa, the matter could be considered theft or fraud under Article 212 of the Penal Code. He emphasized that there is both a religious and legal obligation to return entrusted funds in their original form.

“If employees contest this issue in court after refusing to accept service charge in rufiyaa, the outcome will be clear,” he stated.

As the operator of several Category A resorts employing thousands of workers, Gasim acknowledged the currency challenges but maintained that service charge is a fundamental right of employees. He noted that resorts already receive special privileges for dollar conversion under the law.

Gasim, a former governor of the Maldives Monetary Authority, also expressed concern about reports of other companies planning to pay salaries in rufiyaa. He emphasized that companies must honor existing dollar-denominated employment contracts unless employees voluntarily agree to accept payment in rufiyaa.

Under the Foreign Currency Act implemented in January, resorts and dollar-earning businesses are required to convert specific amounts to local currency through Maldivian banks. Category A resorts must either convert $500 per tourist or 20% of their monthly foreign currency revenue, while Category B guesthouses must convert $25 per tourist or 20% of monthly foreign earnings.