The Labour Relations Authority (LRA) has instructed employers to submit all information on service charge to the designated portal established by Maldives Inland Revenue Authority (MIRA).
LRA stated employers are required to submit information on the total income received as service charge for the month, the amount eligible for each employee and the disbursed amount. The information is required to be submitted to LRA and MIRA.
LRA and MIRA had established an agreement in October, under which LRA can access information submitted by employers to MIRA’s online portal. Under the agreement, MIRA will also be collecting the fines which are to be paid to LRA.
Service charge information is required to be submitted to LRA under the Employment Act. The latest amendment to the Employment Act mandates employers to distribute at least 10% of the total income received as service charge to employees.
Meanwhile, the government has also stated the minimum wage announced earlier this month does not include the service charge distributed to employees. Therefore, service charge must be paid to employees in addition to the minimum wage.