The Privatization and Corporatization Board (PCB) has instructed state-owned enterprises to limit the Ramadan bonus to MVR 3,000 after some companies decided to pay more than the legally mandated amount.
If the Ramadan bonus has been issued in excess of MVR3,000, the PCB said in a circular released on Sunday that the additional amount should be deducted from the salary for March.
"If an additional gift is to be given to employees in relation to Ramadan, and if the company is profitable, [companies should] pay attention to doing so to the extent that it does not adversely affect cashflow," the circular read.
The employment law entitles each employed Muslim worker to MVR 3,000 as a Ramadan bonus.
Both government-owned companies and subsidiaries must comply with the circular, PCB said.
This year's Ramadan is due to begin on March 11.
