"With the minimum wage being set, the salaries are now improved. Therefore, a decision was made to discontinue this allowance. No deductions are being made from basic salary," they explained.
Fenaka Corporation has denied allegations that they would be deducting 60 percent of basic salary from employees who go on annual leave.
A circular sent to employees of Fenaka stated that a board decision had been made to no longer issue 60 percent of basic salary amount to those who go on annual leave in accordance with the employee regulations. The circular, which had Fenaka Managing Director Muaz Mohamed Rasheed's signature, said that the issuance of this 60 percent of pay had been brought to an end effective yesterday.
This led to allegations being raised on social media that Fenaka employees were being denied 60 percent of their basic salary for taking annual leave.
A Fenaka Media Official told Mihaaru News that prior to the minimum wage being set, Fenaka employees had been receiving very low pay. Hence, at the time, the company had given an additional allowance equivalent to 60 percent of basic salary to employees going on annual leave.
Last Monday, the company's Board of Directors had decided to discontinue issuance of this allowance.
"With the minimum wage being set, the salaries are now improved. Therefore, a decision was made to discontinue this allowance. No deductions are being made from basic salary," they explained.
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