SOEs told not to strain cash flow in disbursing Ramadan allowance

Finance Ministry headquarters in Male' City. (Sun Photo/Fayaz Moosa)

The Privatization and Corporatization Board (PCB) has instructed state-owned enterprises (SOEs) not to strain the cash flow when disbursing Ramadan allowance to employees.

In a circular issued on Monday, PCB noted that according to the Employment Act, workers are entitled to MVR 3,000 as Ramadan allowance.

The board said that people working more than one paid job are entitled to the Ramadan allowance from their primary employer, and should not be paid the allowance from additional employers.

The board added that employees on paid leave or no-pay leave at the start of Ramadan will not be entitled to the allowance. But if they return to work during Ramadan, their allowance will be calculated based on their days of service.

Meanwhile, the allowance of new employees who join work after the first day of Ramadan will also be calculated based of their days of service.

PCB also instructed companies that pay their employees higher or lower than MVR 3,000 as the Ramadan allowance to adjust it on the March payroll.

The board added that companies that are profitable and pay additional gifts for Ramadan must ensure it doesn’t strain the cash flow.

The circular is applicable to all government companies, state-owned enterprises and their subsidiaries.