Private companies to be given one year to implement Ramadan allowance change

The Social Affairs Committee of the Parliament has passed to allow a period of one year to private companies, prior to the implementation of the amendment to the Employment Act to pay minimum Ramadan allowance of MVR 3,000 to employees.

The bill, which also states that it is optional to pay Ramadan allowance to foreign employees, was passed by the committee and sent to the parliament on Monday night.

The bill seeks to make Ramadan allowance more equal for all citizens, and if passed, would assure a minimum Ramadan allowance of MVR 3,000 to all Maldivians.

The Employment Act presently states that one-third of a person’s salary must be paid as Ramadan allowance prior to the commencement of the month of Ramadan every year. It adds that if one-third of the salary is less than MVR 2,000, the employee shall be paid MVR 2,000; and if one-third of the salary is higher than MVR 10,000, the employee shall be paid MVR 10,000.

The bill was submitted to the parliament on behalf of the government by Dhuvaafaru MP Mohamed Ali.

Presenting the bill at the parliament yesterday, Mohamed Ali said that there should not be any discrimination in Ramadan allowance based on salaries.

During the debate in parliament yesterday, the bill also received criticism from some opposition MPs, who said that private companies - unlike the government - would not be able to implement the sudden increase in Ramadan allowance.

Komandoo MP Ahmed Nashid quoted the Governor of the central bank, Maldives Monetary Authority (MMA), and said that due notice must be given before such abrupt amendments are made to laws.

Earlier, Chairman of Public Accounts Committee and Vilimalé MP Ahmed Nihan Hussain Manik said that everyone should receive MVR 3,000 as minimum Ramadan allowance, and President Abdulla Yameen does not have any objections to the provision of equal Ramadan allowance for all citizens.

Minister of Finance Abdulla Jihad has said that the amendment will be implemented this year if the bill is passed by the parliament before Ramadan.

Ramadan is expected to begin this year on 18 June.