Tuesday, July 13, 2010

Ramadan Allowance

As a fan of social media and hr professional last year what bothered me most in regard to Ramadan allowance was the employment bill and the concerns of social workers. Twits kept flowing of how unfair the Ramadan allowance was. Ramadan Allowance became the topics of coffee where solutions were discussed.

Employment bill states that “Each employee is entitled to a sum of money no less than one third of his monthly salary as a Ramadan bonus, payable before the beginning of Ramadan” (chapter 4 clause 51). However it also states a number of people exempted from this chapter (chapter 4 clauses 34).

Ramadan allowance is a full hearted allowance given for the benefit of the employees to celebrate the holy month of Ramadan. And I strongly believe that it is not fair for Parliament Members to receive more than MRF 20,000.00 and expats (especially believers of other gods) to receive significantly higher allowance than colleagues who actually should be getting the benefits of the holy month of Ramadan.

The constitution of Maldives states that “Every individual is equal before and under the law, and has the right to the equal protection and equal benefit of the law.” (Clause 20).

Given the constitution of Maldives and the employment act I stand on my idea of equal Ramadan allowance for all Maldivians.

It is shamed that most decision makers are blinded by the cash value they will receive for Ramadan allowance in making the decision of Ramadan allowance. These figures do not allow them to think beyond the employment act for the benefit of lower level colleagues.

Average 1/3 of salaries of locals are approximately MRF 2,000.00. However the very seniors in an entity receive approximately MRF 5,000.00 if 1\3 of the salary is given as Ramadan allowance.

Average 1/3 of salary of a professional expatriate (despite religion) receives approximately MRF 4,000.00 if Ramadan allowance is given as per employment act alone. However, solely as per employment act, the lowest rank of civil servants gets merely MRF 1,000.00 as Ramadan allowance.

Ramadan is a month whereby most citizens renovate their homes, buy new kitchen appliances and spend 50% more on food and groceries. However the well off require less renovation in their houses while the normal people require big time renovations. Fruits is daily refreshed in the refrigerators of well offs while the normal people would like to have lots of fresh fruit drinks (which is classified as a luxury in their normal living) during Ramadan. So what justifies the well off being given a higher Ramadan Allowance than the normal people?

Plus this idea isn’t going to boost the budget consumption either. If the most senior staff receives MRF 10,000.00 for Ramadan Allowance and the lowest rank staffs receive MRF 1,000.00 and if there is 2 senior staffs (same salary) and 3 lower rank staffs (same salary). You can still total up and take the average for Ramadan allowance. In the above mention case Ramadan Allowance for all staffs will be MRF 4,600.00 making the budget being consumed at the budgeted rate or less.

I say why can't all HR professionals for once look into the exemptions (including "verin") in employment act and look in to the equality clause in the constitution and make your very executive decision makers understand this. I repeat EQUAL RAMADAN ALLOWANCE for all citizens. For once this might be a wise reason to drag your company into employment tribunal even if a senior complains.