Nasheed: Service charge issue to be resolved with minimum wage

Former President and current Speaker of the Parliament Mohamed Nasheed has stated that the issue of service charges paid to resort employees will be resolved with the introduction of laws regarding minimum wage.

Nasheed was speaking to supporters in H. A. Baarah yesterday, during MDP’s campaign tour named “Agenda 19 Rashah” for the upcoming local council elections, when he stated that the work of minimum wage was one of the most important to be planned for the year. The speaker also stated that it was an important responsibility placed on the MPs.

Nasheed stated that some resorts in the country are treating employees unjustly when paying service charges, and noted that the issue would be resolved when minimum wage laws were introduced to the country.

“The work (on service charge) must be conducted with the work to set a minimum wage. So, god willing, in the next two or three months, this issue (of service charge) will be included in the work for setting a minimum wage,” said Nasheed.

He also stated that even though MDP had not made any promises regarding service charges, it was an issue that needed to be resolved through lawful means.

One of the biggest complaints of resort employees is that they are not paid the service charge they deserve by employers. Service charges can be levied upon customers separately from the services provided, according to the Employment Law. It is also mandatory to distribute 99 percent of the service charge collected amongst employees after deducting one percent for administrative fees. The law also states that service charges must be paid to employees in the next month of collection.