The Labour Relations Authority on Sunday called on all institutions and companies to provide employees with Ramadan allowance as per the Employment Act.
In a notice, the authority noted that the mandatory allowance for the Islamic holy month of Ramadan is either withheld or distributed in violation of the Employment Act by a number of employers. The authority therefore urged all employers to pay the bonus to staff in accordance with the law.
The Employment Act mandates a bonus of MVR 3,000 as Ramadan allowance to all employed locals to be paid by their employers before the start of the holy month. The Act also states that employers may pay Ramadan allowance to Muslim expatriate staff at their discretion.
The Employment Act previously mandated that employees pay a third of employees’ basic salaries as Ramadan allowance within the range MVR 2,000 to MVR 10,000. However, the Act was later amended in 2015 to specify MVR 3,000 as the standard Ramadan allowance for all local employees in the Maldives.