Resort Service Charge In Maldives

The Maldives tourism sector offers excellent earning opportunities for workers, so their basic salary is one of a few income channels they are entitled to. Resort service charge in Maldives is another approved source employees can earn money. 

With over 500,000 tourists in 2023 already, this gives you an idea of how services are required in these resorts. 

Services rendered to tourists come with a charge, and according to the law, these charges are distributed and shared equally among each employee every month. Every resort in the Maldives is obliged to make this distribution. 

However, the amount resorts get from these charges varies from each other. So, if you work in a high service charge resort in Maldives, you can earn higher. This post will look at the top 10 resort service charges in Maldives based on their service charge. 

What Is A Resort Service Charge?

A Resort service charge is a fee that hotels and resorts demand for specific services not included in the room rates. These charges are mandatory, another way for the hotels to earn extra money. 

Resort service charge in Maldives is collected by all businesses in the tourism sector. This fee is levied at 10% of the services offered by tourist properties. Although it could be more, 10% is the least any business could charge for service charges in Maldives. 

The receipts of these charges are considered, and employers are expected to distribute the appropriate amount to each employee. The Maldives Government has made this law possible by placing a fine on employers that do not pay employees the service charge. 

The Labour Relations Authority is responsible for enforcing laws related to service charges in the Maldives. And employers who fail to distribute it to employees would get fined. 

How Is Service Charge Calculated?

Service charge in Maldives depends on the total receipts for these charges; and the number of days the employee worked. To get the monthly service charge of a resort, you divide the total receipts by the days of that month and multiply by the number of days the employee worked. 

So, an employee can know how much they could earn daily from resort service charges. The daily amount is obtained by dividing the total amount to be distributed as service charge by the number of days worked. 

Top 10 Resort Service Charge In Maldives (March 2023)

The employers always keep track of the service charge for each month, and this is to be distributed to the employees. Here, we will look at the updates of service charges of different resorts in the Maldives.

1.   Velaa Private Island

The Velaa Private Island is one of the most consistent resorts in terms of high service charges. Their service charge for March 2023 stands at $2,444 per staff. This amount is above that of the previous month, which was $2431 for each staff member. 

At this amount, this hotel has the highest service charge in the Resort for March. In addition, they had over $3,000 in service charges in January. Velaa Private Island has twice been top in resort service charges in the last three months.

2.  Soneva Fushi

In February, Soneva Fushi was not even in the top 20 resorts with the highest service charge per staff. This resort had a service charge of over $800 per staff, but they improved in March, as they are now the resort with the second highest at $1,014 per staff. 

Although this resort had more than double this service charge fee in January($2,200+), Seneca Fushi ranked tenth among other resorts.

3.  Milaidhoo

This resort has had a steady drop in their service charge amount per staff since the turn of the year. Milaidhoo Maldives has recorded service charges of $1,319, $1,284, and $1,000 for January, February, and March, respectively. 

Despite their amount reduction, they are in the top 3 as most other resorts have racked up less than $1,000 in service charges for March. 

4.    Soneva Jani

The first resort with a service charge of less than a thousand dollars in March is Soneva Jani. At $953 per staff, there is nearly $300 short of their amount in February, which was $1,205. 

Despite having a service charge of $2,119 per staff in January, their numbers have dropped over the last two months. However, this fact is unsurprising as most other resorts recorded low service charges in March. 

5.     Emerald Maldives Resort and Spa

This resort in March recorded one of the highest service charges per staff with $953. However, they got $1,400 in the previous month. But their February service charge did not put them in the top 10 highest. This month's numbers put them on our list as they reached the one-thousand-dollar mark. 

6.    LUX, South Ari Atoll

Lux Resorts is one of the luxurious hotels in Ari Atoll, Maldives, and this place usually gets a decent service charge monthly. In March and February 2023, this resort got a service charge of $873 and $1,056, respectively. 

This resort's $873 service charge per staff makes it the sixth highest for the month of all other tourism properties in the Maldives. 

7.  Emerald Faarufushi Resort & Spa

The resort service charge in the Maldives for this place was $811 per staff (March 2023). This resort is one of the best in terms of recreational facilities. And it was launched in 2013, giving them good service credibility. 

8.  Sun Siyam Iru Fushi

Another hotel that has seen a steady decline in the amount obtained from service charges per staff since the turn of the year is Sun Siyam Iru Fushi. In January, this resort distributed $840 per staff. 

However, that amount was reduced to around $806 for each staff member the following month. 

March also saw this amount decrease, with each staff receiving a service charge of about $754. 

9.   Amilla Maldives Resort & Residences

Amilla Residences is not among the high service charge resorts in Maldives, but they have a steady flow distributed monthly. This resort recorded $792 and $776 in service charges for each staff member in January and February. 

The amount distributed in March was close to the previous two months, as Amilla Maldives shared $749 per staff. Although they have yet to cross the $1,000 mark this year, this resort has consistently kept the amount in a decent range this year. 

10.  Oblu Nature Helengeli

This resort is one of the places in the Maldives that covers so much beauty. If you want to explore the fantastic features of plants and animals, Oblu Nature Helengeli is where you need to go. Resort staff members get a decent service charge monthly. Despite this year not yielding a high amount, employees in this resort got $825 each in service charges. 

So, these are the top 10 resorts based on their service charge in March 2023. A few other Islands have had high service charges in the first couple of months of the year. Ritz Carlton, Fari Island is an excellent example of these resorts. 

SEE ALSO: Pre-opening Resorts In Maldives (2023). 

Top 5 High Service Charge Resorts In Maldives (2023)

The service charge for resorts in Maldives might have revealed a few new places into our top 10 list, but we cannot also forget about some high service charge resorts that have a distributed a good amount in 2023. This list will do justice to bringing to light some resort with high service charge in 2023. 

1.    Ritz Carlton, Fari Islands

Although not in the top 10 list for March, Ritz carlton broke the record of the highest service charge in Maldives a single month after recording $4,500 per staff in January. The following month also saw this resort distribute $2,400 per staff. 

2.    Cheval Blanc Randheli

The Cheval Blanc Randheli has been one of the highest ranked in terms of service charge this year. Despite having a poor service charge in March, we cannot overlook the fact that they stood at $3,540 and $2,343 in January and February, respectively.

3.  Waldorf Astoria Ithaafushi

This resort is another one which has been doing great this year except for March. They distributed $3,300 in service charge per staff in January. The following month also saw a good turn out of receipts with their service charge reached $2, 000. 

4.   One&Only Reethi Rah

One&Only Reethi Ray also makes the list of one of the high service charge resort in Maldives. They were are among the top 5 in January and February with $3, 000 and $1,556, respectively. 

5.    Four Seasons Resorts at Landaa Giraavaru

Finally, on the our list of high service charge resorts in Maldives this year, Four Seasons makes the cut. They have been ranked at the top throughout this high season period in the Maldives. Four season got $3,000 and $1,387 in January and February, respectively. 

Is Resort Charges In Maldives Compulsory?

According to law, a rate of at least 10% is collected for every service that businesses in the tourism sector offer. This service charge is then shared equally among employees of the resort. 

All resorts are obliged to distribute this service charge to each staff member. And the law sanctions employers who do not pay the service charge. 

Also, 99% of the service charge is shared among the employees, while 1% goes to the Maldives government. 

What Factors Affect Resort Service Charge In Maldives

Resort service charge is usually different every month. The list we have mentioned in this article justifies that fact. However, it is always a recurring question of what factors affect the service charge of these resorts in the Maldives. 

Firstly, it is crucial to know that the resort's charges vary as guests have different rates depending on the rooms booked. Also, you have to consider the sales of other items and services for the guests visiting for tourism. So, that means high service charge resorts eventually generate more from item sales, services, etc. 

Secondly, the time of the year is another reason why resort charges differ. This factor is huge in the amount of service charge the resort distributes. In the Maldives, January is one of the best times to visit, so it would be expected that service charges generated in this period would be high. 

This is evident as January saw many resorts rack over $2,000 in service charges per staff. It also saw a resort –Ritz Carlton, Fari Island– record about $4,500 in service charges. This amount is a service charge all-time high in a single month for any tourism property in the Maldives. 

Allowances In the Ramadan Month

Employees in the Maldives who are Muslims also have an additional payment entitlement. And that is the Ramadan Allowances. The regulations state that every Muslim employee should get a minimum of 3,000 MVR. This allowance does not include their basic salary, allowances offered in the contract, or service charge. 

Employers who do not pay out the Ramadan allowances to their Muslim employees could face a fine between $324 to $3,242. 

Why Is Resort Service Charge Important?

Service charge is an essential source of income for workers in the Tourism sector in Maldives. It is one of their most viable option for earning extra cash while working in resorts. Several services are offered in these hotels, and the charges levied are what staff members take home at the end of every month. 

This service fee also enables resorts to provide exceptional customer service to their guests. Also, this charge can allow resorts to deliver outstanding services and offers sales for items without increasing the prices. 

However, the importance of resort service charges lies in how much they provide extra income for the staff members. 

What Happens If Employees of Resorts In Maldives Are Not Paid Service Charges?

The law makes it mandatory for every tourism property to distribute resort charges equally to its employees. Businesses that fail to do so face strict penalties in the form of fines. 

According to the regulations, a business must carry out the collection and distribution of service charges. This process starts with the employers sending the total monthly receipts to the staff members or employees. Failure to do so after the deadline may attract a fine of at least 10,000 MVR. Other violations could result in a maximum penalty of 100,000 MVR. 

Wrapping Up

Resort service charge in Maldives is no longer selective but an obligation for all businesses in the tourism sector. And this has helped employees get another income stream besides their salary and allowances. 

The list we have compiled in this article shows some high service charge resorts in Maldives, among others. These charges vary depending on some factors, but equal distribution across every staff member in a resort makes it viable for all employees.