Privatization and Corporatization Board (PCB) has issued a directive on disbursing Ramadan allowances to employees on Sunday, March 03, 2024.<\/p>\n
According to the PCB, as per the amendment to Article 4 of the Act No: 2\/2008 (Employment Act), all Muslim employees are subject to a Ramadan allowance of MVR 3,000.<\/p>\n
For individuals employed under multiple employers, they are subject to this allowance from the main employer; with the rest of the employers refraining from disbursing the allowance.<\/p>\n
In addition to this, employees on paid leave (on scholarships) or on no-pay leaves at the time when Ramadan commences, will not be subject to the allowance as well. Should any employee resume their work after said leave during Ramadan, then they are subject to the allowance. This allowance will be counted from the date of their resumption to the remainder of Ramadan.<\/p>\n
Employees who join their place of employment on the second of Ramadan will receive their allowance, after calculating the days left in the month from the date of their employment commencement.<\/p>\n
Moreover, if employees receive the allowance more or less than MVR 3,000, their salaries for the month of March should be adjusted accordingly.<\/p>\n
If companies wish to extend other gifts to employees besides the Ramadan allowance, then they are advised to do so, in a manner that would not adversely impact the cashflow.