A 10% charge, distributed monthly, with admin deductions capped at 1% — and fines up to MVR 500,000 for properties that fail to distribute.
Under the Employment Act and Tourism Act, tourism businesses add a 10% service charge on services. By law it must be shared among employees each month.
Administrative deductions are allowed but capped at 1% of the amount collected. The Labour Relations Authority oversees compliance, and failing to distribute the charge can draw fines reaching MVR 500,000. Discriminating between employees in how the charge is shared is also unlawful.
Source: Labour Relations Authority. Summarised in our own words; figures are indicative.
Labour Law
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